Investing.com - The U.S. dollar rose to a two-week high against its Canadian counterpart on Thursday, as the absence of stimulus indications by the Federal Reserve boosted the greenback, while worries over the euro zone’s debt crisis continued to weigh on sentiment.
USD/CAD hit 1.0244 during U.S. morning trade, the highest since June 29; the pair subsequently consolidated at 1.0240, gaining 0.34%.
The pair was likely to find near-term support at 1.0172, Wednesday’s low and resistance at 1.0266, the high from June 27.
The U.S. Department of Labor said earlier that the number of individuals filing for initial jobless benefits in the week ending July 7 fell by 26,000 to a seasonally adjusted 350,000, compared to expectations for a decline of 4,000 to 372,000.
The surprisingly strong employment data added to fading hopes over further easing from the Federal Reserve after minutes of the central bank’s June policy-setting meeting revealed that only a few board members thought that more asset purchases would be necessary.
Several other officials indicated that more action could be warranted if growth slows, risks intensified or if inflation seemed likely to fall “persistently” below their goal.
Only four Fed officials mentioned more quantitative easing in their individual forecasts, two saying they supported more easing and two saying they would consider it.
Meanwhile, market players were looking ahead to Chinese second quarter growth figures due out on Friday, to gauge whether China is a heading towards a hard or a soft landing.
A deeper slowdown in China would impair a global expansion that is already faltering because of the ongoing debt crisis in the euro zone.
Fears over the global economic outlook intensified after official data Tuesday showed that Chinese exports and imports in June slowed from the previous month, as weakening global demand weighed.
Elsewhere, the loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD dipping 0.13% to trade at 1.2471.
Sentiment on the euro remained vulnerable after the head of Italy's business group warned that Italy’s economy will shrink by more than 2.4% this year, a deeper contraction than previously expected.
Lingering concern over the deteriorating situation in Spain following Wednesday's announcement of EUR65 billion in new austerity measures also weighed.
Market analysts warned that the fresh budget cuts were likely to drag Spain’s economy deeper in to a recession.
USD/CAD hit 1.0244 during U.S. morning trade, the highest since June 29; the pair subsequently consolidated at 1.0240, gaining 0.34%.
The pair was likely to find near-term support at 1.0172, Wednesday’s low and resistance at 1.0266, the high from June 27.
The U.S. Department of Labor said earlier that the number of individuals filing for initial jobless benefits in the week ending July 7 fell by 26,000 to a seasonally adjusted 350,000, compared to expectations for a decline of 4,000 to 372,000.
The surprisingly strong employment data added to fading hopes over further easing from the Federal Reserve after minutes of the central bank’s June policy-setting meeting revealed that only a few board members thought that more asset purchases would be necessary.
Several other officials indicated that more action could be warranted if growth slows, risks intensified or if inflation seemed likely to fall “persistently” below their goal.
Only four Fed officials mentioned more quantitative easing in their individual forecasts, two saying they supported more easing and two saying they would consider it.
Meanwhile, market players were looking ahead to Chinese second quarter growth figures due out on Friday, to gauge whether China is a heading towards a hard or a soft landing.
A deeper slowdown in China would impair a global expansion that is already faltering because of the ongoing debt crisis in the euro zone.
Fears over the global economic outlook intensified after official data Tuesday showed that Chinese exports and imports in June slowed from the previous month, as weakening global demand weighed.
Elsewhere, the loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD dipping 0.13% to trade at 1.2471.
Sentiment on the euro remained vulnerable after the head of Italy's business group warned that Italy’s economy will shrink by more than 2.4% this year, a deeper contraction than previously expected.
Lingering concern over the deteriorating situation in Spain following Wednesday's announcement of EUR65 billion in new austerity measures also weighed.
Market analysts warned that the fresh budget cuts were likely to drag Spain’s economy deeper in to a recession.