Investing.com - The U.S. dollar dropped to one-month lows against its Canadian counterpart on Thursday, as U.S. jobless claims and inflation data painted a mixed picture of the economy and as the Federal Reserve's latest policy statement weighed broadly on the greenback.
USD/CAD hit 1.2132 during early U.S. trade, the pair's lowest since May 19; the pair subsequently consolidated at 1.2144, retreating 0.73%.
The pair was likely to find support at 1.2082, the low of May 4 and resistance at 1.2239, the session high.
The U.S. Department of Labor reported on Thursday that the number of individuals filing for initial jobless benefits in the week ending June 13 decreased by 12,000 to a four-week low of 267,000 from the previous week’s total of 279,000.
Analysts had expected initial jobless claims to fall by 2,000 to 275,000 last week.
A separate report showed that U.S. consumer prices increased by 0.4% last month, below forecasts for a gain of 0.5% and following a rise of 0.1% in April. Year-over-year, consumer prices were flat in May.
Consumer prices, excluding food and energy costs, increased by 0.1% in May, missing expectations for a 0.2% increase.
The greenback came under broad selling pressure after the Fed lowered both its U.S. growth forecast and its interest-rate projections on Wednesday, prompting investors to push back expectations on the timing of an initial rate hike.
Fed Chair Janet Yellen said the central bank wanted to see "more decisive evidence" of sustained growth before raising rates, but acknowledged that the economy has "expanded moderately" after a weak first quarter.
The loonie was higher against the euro, with EUR/CAD slipping 0.13% to 1.3847.
The euro remained under pressure as a deadlock between Greece and its international lenders continued ahead of the approaching deadline for Greece’s repayments to the International Monetary Fund.
Europe wants Greece to make spending cuts in order to secure a deal that will unlock €7.2 billion in bailout funds and prevent Athens defaulting on its debts when its bailout expires at the end of the month.