Investing.com - The U.S. dollar rose to session highs against the Canadian dollar on Thursday after data showed that the U.S. economy grew at a faster than expected rate in the third quarter and jobless claims fell.
USD/CAD hit 1.4061 during early U.S. trade, the session high; the pair subsequently consolidated at 1.0435, gaining 0.18%.
The pair was likely to find support at 1.0404, the session low and resistance at 1.0461, the high of November 5.
The dollar strengthened across the board after official data showed that the U.S. economy grew at an annual rate of 2.8% in the three months to September, well above expectations for growth of 2%. The U.S. economy grew by 2.5% in the preceding quarter.
The robust data fuelled expectations that the Federal Reserve will start to taper its stimulus program as soon as its next monthly meeting in December.
Meanwhile, the Department of Labor said the number of individuals filing for initial jobless benefits in the U.S. last week fell by 9,000 to a seasonally adjusted 336,000.
Analysts had expected U.S. jobless claims to fall by 10,000 to 335,000 last week from the previous week’s total of 345,000.
Elsewhere, the loonie, as the Canadian dollar is also known, was sharply higher against the euro, with EUR/CAD dropping 0.93% to 1.3950.
The euro dropped after the European Central Bank cut its benchmark interest rate to a record-low 0.25% from 0.5% in an unexpected decision. The bank also cut its marginal lending rate to 0.75% from 1% and left its deposit facility rate unchanged at 0.0%.
ECB President Mario Draghi the decision was 'in line' with the ECB's forward guidance on interest rate policy from July.
Draghi reiterated that euro zone borrowing costs will remain at their present or lower levels until conditions improve, indicating that further rate cuts are still possible.
The euro zone may experience "a prolonged period of low inflation", Draghi warned, followed by a gradual return back to the bank’s target of close to, but still below 2%.
USD/CAD hit 1.4061 during early U.S. trade, the session high; the pair subsequently consolidated at 1.0435, gaining 0.18%.
The pair was likely to find support at 1.0404, the session low and resistance at 1.0461, the high of November 5.
The dollar strengthened across the board after official data showed that the U.S. economy grew at an annual rate of 2.8% in the three months to September, well above expectations for growth of 2%. The U.S. economy grew by 2.5% in the preceding quarter.
The robust data fuelled expectations that the Federal Reserve will start to taper its stimulus program as soon as its next monthly meeting in December.
Meanwhile, the Department of Labor said the number of individuals filing for initial jobless benefits in the U.S. last week fell by 9,000 to a seasonally adjusted 336,000.
Analysts had expected U.S. jobless claims to fall by 10,000 to 335,000 last week from the previous week’s total of 345,000.
Elsewhere, the loonie, as the Canadian dollar is also known, was sharply higher against the euro, with EUR/CAD dropping 0.93% to 1.3950.
The euro dropped after the European Central Bank cut its benchmark interest rate to a record-low 0.25% from 0.5% in an unexpected decision. The bank also cut its marginal lending rate to 0.75% from 1% and left its deposit facility rate unchanged at 0.0%.
ECB President Mario Draghi the decision was 'in line' with the ECB's forward guidance on interest rate policy from July.
Draghi reiterated that euro zone borrowing costs will remain at their present or lower levels until conditions improve, indicating that further rate cuts are still possible.
The euro zone may experience "a prolonged period of low inflation", Draghi warned, followed by a gradual return back to the bank’s target of close to, but still below 2%.