Investing.com - The U.S. dollar dipped lower against the Canadian dollar on Thursday, as data showing that Canada’s trade surplus widened more-than-expected in February lent modest support to the Canadian dollar.
USD/CAD touched session lows of 1.109 and was last down 0.10% to 1.1023.
The pair was likely to find support at 1.0999 and resistance at 1.1046, Wednesday’s high.
Statistics Canada reported that the trade surplus came in at C$290 million in February, compared to a deficit of C$340 million in January. Analysts had expected Canada to post a trade surplus of C$200 million.
Exports grew 3.6% to C$42.35 billion and imports increased 2.1% to C$42.06 billion in February, Statistics Canada said.
In the U.S., data showed that trade deficit unexpectedly widened to $42.3 billion in February from a deficit of $39.28 billion the previous month, as exports dropped 1.1% and imports rose 0.4%.
Analysts had expected the U.S. trade deficit to narrow to $38.5 billion.
Separately, the Labor Department reported that the number of people who filed for unemployment assistance in the U.S. last week increased by 10,000 to 326,000 from the previous week’s revised total of 310,000.
Analysts had expected jobless claims to rise by 7,000 to 317,000 last week.
Elsewhere, the loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD down 0.44% to 1.5123.
The single currency weakened after European Central Bank President Mario Draghi played down the risk of deflation in the euro zone on Thursday, but added that the bank has not ruled out further policy action, including quantitative easing.
The comments came after the central bank left rates on hold at a record low 0.25%.