Investing.com - The U.S. dollar was trading close to two-week highs against the Canadian dollar on Thursday after the Bank of Canada dropped language referring to the need for future rate hikes from its monetary policy statement on Wednesday.
USD/CAD hit 1.0417 during early U.S. trade, the highest since October 10; the pair subsequently consolidated at 1.0408, gaining 0.23%.
The pair was likely to find support at 1.0365, the session low and resistance at 1.0418, the high of October 10.
The Canadian dollar dropped on Wednesday after the BoC removed language referring to the need for future interest rate increases from its policy statement and revised down its outlook for growth.
The central bank cut its outlook for economic growth to 1.6% this year, down from 1.8% in July and said the economy would expand by 2.3% in 2014, down from 2.7%, as “uncertain global and domestic economic conditions” weigh on economic activity.
The greenback struggled to build on gains after data earlier in the week showing that U.S. jobs growth slowed in September cemented expectations that the Federal Reserve would continue the current pace of its asset purchase program well into next year.
Meanwhile, data released on Thursday showed that the number of people who filed for unemployment assistance in the U.S. fell less-than-expected last week.
The Department of Labor said the number of individuals filing for initial jobless benefits declined by 12,000 to a seasonally adjusted 350,000. Analysts had expected U.S. jobless claims to fall by 22,000 to 340,000 last week.
A separate report showed that the U.S. trade deficit widened 0.4% to a seasonally adjusted USD38.8 billion in August from a deficit of USD38.6 billion in July. Economists had forecast a deficit of USD39.5 billion.
Elsewhere, the loonie, as the Canadian dollar is also known, was lower against the euro, with EUR/CAD advancing 0.47% to 1.4374.
The U.S. was to release data on new home sales later in the session.
USD/CAD hit 1.0417 during early U.S. trade, the highest since October 10; the pair subsequently consolidated at 1.0408, gaining 0.23%.
The pair was likely to find support at 1.0365, the session low and resistance at 1.0418, the high of October 10.
The Canadian dollar dropped on Wednesday after the BoC removed language referring to the need for future interest rate increases from its policy statement and revised down its outlook for growth.
The central bank cut its outlook for economic growth to 1.6% this year, down from 1.8% in July and said the economy would expand by 2.3% in 2014, down from 2.7%, as “uncertain global and domestic economic conditions” weigh on economic activity.
The greenback struggled to build on gains after data earlier in the week showing that U.S. jobs growth slowed in September cemented expectations that the Federal Reserve would continue the current pace of its asset purchase program well into next year.
Meanwhile, data released on Thursday showed that the number of people who filed for unemployment assistance in the U.S. fell less-than-expected last week.
The Department of Labor said the number of individuals filing for initial jobless benefits declined by 12,000 to a seasonally adjusted 350,000. Analysts had expected U.S. jobless claims to fall by 22,000 to 340,000 last week.
A separate report showed that the U.S. trade deficit widened 0.4% to a seasonally adjusted USD38.8 billion in August from a deficit of USD38.6 billion in July. Economists had forecast a deficit of USD39.5 billion.
Elsewhere, the loonie, as the Canadian dollar is also known, was lower against the euro, with EUR/CAD advancing 0.47% to 1.4374.
The U.S. was to release data on new home sales later in the session.