Investing.com - The U.S. dollar fell to two-week lows against the Canadian dollar in early trade on Thursday, as the Bank of Canada’s neutral stance on interest rates and upbeat Canadian housing data supported the Canadian dollar.
USD/CAD hit 1.0990, the weakest since February 19 and was last down 0.29% to 1.0998.
The pair was likely to find support at 1.0956 and resistance at 1.1045, the session high.
Canada’s dollar remained supported after the BoC left rates on hold on Wednesday and reiterated that the next move in rates would be data dependent.
The bank said economic growth in the fourth quarter of 2013 was slightly stronger than anticipated, adding that it still expects growth of 2.5% in 2014.
Statistic Canada reported Thursday that the number of new building permits issued in January rose 8.5%, well ahead of forecasts for a 1% gain. December’s figure was revised to a drop of 4.8% from a previously reported decline of 4.1%.
In the U.S., the Department of Labor said the number of individuals filing for initial jobless benefits last week fell by 26,000 to 323,000 from the previous week’s revised total of 349,000.
Analysts had expected jobless claims to fall by 11,000 to 338,000 last week.
Elsewhere, the loonie, as the Canadian dollar is also known, was lower against the euro, with EUR/CAD rising 0.40% to 1.5206.
The euro was boosted after European Central Bank President Mario Draghi confirmed that the bank left its benchmark interest rate unchanged at 0.5% on Thursday, with the latest economic data indicating that “the moderate economic recovery in the euro zone is proceeding.”