Forex - USD/CAD higher after U.S. jobless data

Investing.com - The U.S. dollar was higher against its Canadian counterpart on Thursday, after upbeat U.S. jobless data added to expectations for a near-term end to the Federal Reserve's stimulus program.

USD/CAD hit 1.0310 during early U.S. trade, the session high; the pair subsequently consolidated at 1.0305, gaining 0.28%.

The pair was likely to find support at 1.0253, the low of July 29 and resistance at 1.0364, the high of July 22.

The Department of Labor said the number of individuals filing for initial jobless benefits in the week ending July 26 fell by 19,000 to a seasonally adjusted 326,000.

Jobless claims for the preceding week were revised down to a gain of 345,000, from a previously reported 343,000.

Analysts had expected U.S. jobless claims to hold steady at 345,000 last week.

The data came a day after the Fed said it would keep buying USD85 billion a month in mortgage and Treasury securities and added that the pace of economic growth is "modest".

Market players were looking ahead to highly-anticipated data on U.S. nonfarm payrolls due on Friday for indications of how the recovery in the U.S. labor market is progressing.

The loonie was fractionally higher against the euro with EUR/CAD edging down 0.07%, to hit 1.3664.

The euro came under pressure after European Central Bank President Mario Draghi said interest rates will remain low in the euro zone for an extended period of time.

Following the ECB's monthly policy meeting, Mario Draghi also said that downside risks to growth in the single currency bloc remain, warranting a loose monetary policy.

The ECB left its benchmark interest rate on hold at a record low 0.5%.

The statement came after Markit said the euro zone's manufacturing purchasing managers' index rose to 50.3 in July, from a reading of 50.1 the previous month. Analysts had expected the index to remain unchanged last month.