Investing.com - The U.S. dollar fell to the session low against the Canadian dollar on Thursday, as market sentiment firmed up after the European Central Bank reiterated that it was ready to buy the debt of troubled euro zone states.
USD/CAD hit 0.9834 during early U.S. trade, the pair’s lowest since Tuesday, the pair subsequently consolidated at 0.9841, shedding 0.34%.
The pair was likely to find support at 0.9790, the low of September 27 and resistance at 0.9878, the session high.
Speaking at the ECB’s post-policy meeting press conference, central bank president Mario Draghi said the bank was ready to undertake Outright Monetary Transactions when the prerequisites are in place.
Draghi also said the announcement of OMT’s had helped alleviate market tensions in recent weeks.
The ECB left rates on hold at a record low 0.75% earlier, in a widely anticipated decision.
Market sentiment has been underpinned by hopes that Spain will soon request a bailout and trigger the ECB’s bond purchasing program, a move which investors hope would ease the debt crisis in the region.
The Canadian dollar also found support after the senior deputy governor of the Bank of Canada indicated earlier that the central bank was still looking at raising rates, adding that the bank would continue to monitor conditions in the labor market.
In the U.S., the Department of Labor said the number of people who filed for unemployment assistance in the U.S. last week rose to 367,000, compared to expectations for an increase to 370,000.
The loonie, as the Canadian dollar is also known, was lower against the euro, with EUR/CAD up 0.19% to 1.2768.
Market participants were looking ahead to the release of the minutes of the Federal Reserve’s most recent policy meeting later Thursday, as well as Canada’s Ivey PMI.
USD/CAD hit 0.9834 during early U.S. trade, the pair’s lowest since Tuesday, the pair subsequently consolidated at 0.9841, shedding 0.34%.
The pair was likely to find support at 0.9790, the low of September 27 and resistance at 0.9878, the session high.
Speaking at the ECB’s post-policy meeting press conference, central bank president Mario Draghi said the bank was ready to undertake Outright Monetary Transactions when the prerequisites are in place.
Draghi also said the announcement of OMT’s had helped alleviate market tensions in recent weeks.
The ECB left rates on hold at a record low 0.75% earlier, in a widely anticipated decision.
Market sentiment has been underpinned by hopes that Spain will soon request a bailout and trigger the ECB’s bond purchasing program, a move which investors hope would ease the debt crisis in the region.
The Canadian dollar also found support after the senior deputy governor of the Bank of Canada indicated earlier that the central bank was still looking at raising rates, adding that the bank would continue to monitor conditions in the labor market.
In the U.S., the Department of Labor said the number of people who filed for unemployment assistance in the U.S. last week rose to 367,000, compared to expectations for an increase to 370,000.
The loonie, as the Canadian dollar is also known, was lower against the euro, with EUR/CAD up 0.19% to 1.2768.
Market participants were looking ahead to the release of the minutes of the Federal Reserve’s most recent policy meeting later Thursday, as well as Canada’s Ivey PMI.