Investing.com - The U.S. dollar edged slightly higher against its Canadian counterpart on Thursday, as the greenback recovered from losses posted on Wednesday, although positive current account data from Canada lent some support to the nation's currency.
USD/CAD hit 1.1236 during European afternoon trade, the session low; the pair subsequently consolidated at 1.1257, adding 0.09%.
The pair was likely to find support at 1.1189, the low of November 21 and resistance at 1.1319, the high of November 25.
The greenback came under pressure on Wednesday after data showed that U.S. initial jobless claims rose to the highest level since early September last week, while personal spending rose less than expected.
Durable goods orders rose in line with forecasts, but core durable goods orders fell unexpectedly.
Other reports showed that U.S. consumer sentiment was revised lower, manufacturing activity in the Chicago region slowed and data from the housing sector was mixed.
In Canada, data on Thursday showed that the current account deficit narrowed to C$8.4 billion in the third quarter from C$9.9 billion in the second quarter, whose figure was revised from a previously estimated deficit of C$11.9 billion.
Analysts had expected the current account deficit to hit C$10.3 billion in the last quarter.
The loonie was fractionally higher against the euro, with EUR/CAD easing 0.08% to 1.4055.
Also Thursday, data showed that Germany’s consumer price index rose just 0.6% this month, down from 0.8% in October. On a month-over-month basis, prices were flat.
The data was seen as increasing the likelihood that the European Central Bank will implement additional stimulus measures in an attempt to spur growth and inflation in the euro area.
The report came a day after ECB vice-president Vitor Constancio said it could begin quantitative easing as soon as the first quarter of 2015.