Investing.com - The U.S. dollar dropped against its Canadian counterpart on Thursday, as investors locked in profits from the greenback’s recent rally to a fresh 13-year high amid ongoing concerns over plummeting oil prices.
USD/CAD hit 1.4408 during early U.S. trade, the pair’s lowest since January 15; the pair subsequently consolidated at 1.4411, retreating 0.63%.
The pair was likely to find support at 1.4338, the low of January 15 and resistance at 1.4692, Wednesday’s high and a 13-year high.
Oil prices dropped again on Thursday, re-approaching the 12-year lows hit in Wednesday’s session as a global supply glut continued to pressure prices.
In the U.S., the Department of Labor reported on Thursday that the number of individuals filing for initial jobless benefits in the week ending January 15 increased by 10,000 to 293,000 from the previous week’s total of 283,000.
Analysts expected jobless claims to fall by 5,000 to 278,000 last week.
In addition, the Federal Reserve Bank of Philadelphia said that its manufacturing index improved to -3.5 this month from December's reading of -5.9. Analysts had expected the index to hit -5.0 in December.
The loonie was sharply higher against the euro, with EUR/CAD tumbling 1.24% to 1.5581.
Also Thursday, the European Central Bank said it was maintaining its benchmark interest rate at a record-low 0.05%, in line with market expectations. The central bank also left its deposit facility rate unchanged at -0.30% and left its marginal lending at 0.30%.