Investing.com - The U.S. dollar was lower against the Canadian dollar on Thursday as expectations that the economic impact of the recent U.S. debt crisis would keep the Federal Reserve from scaling back its stimulus program weighed.
USD/CAD hit 1.0292 during early U.S. trade, the lowest since October 7; the pair subsequently consolidated at 1.0306, shedding 0.20%.
The pair was likely to find support at 1.0275, the low of September 30 and resistance at 1.0331, the session high.
The U.S. Congress passed a bill to reopen the government and raise the debt ceiling on Wednesday, just hours ahead of a deadline to avert a debt sovereign debt default.
The deal will fund the government until January 15 and raise the government borrowing limit until February 7. Both sides also agreed to talks over broad budget issues in an attempt to reach a longer-term deal by December 13.
Sentiment on the greenback was hit by fears that the impact of the U.S. government shutdown on the already fragile economic recovery would prompt the Fed to delay plans for rolling back its stimulus program until at least the start of next year.
The possibility of another debt crisis also loomed, as the temporary solution does not resolve the underlying budgetary issues dividing Republicans and Democrats.
Meanwhile, the U.S. Department of Labor said Thursday the number of individuals filing for initial jobless benefits last week declined by 15,000 to a seasonally adjusted 358,000 from a downwardly revised 373,000 in the preceding week.
Analysts had expected U.S. jobless claims to decline to 335,000 last week.
Elsewhere, the loonie, as the Canadian dollar is also known, was sharply lower against the euro, with EUR/CAD rising 0.78% to 1.4082.
The U.S. was to publish a report on the Philly Fed manufacturing index later Thursday.
USD/CAD hit 1.0292 during early U.S. trade, the lowest since October 7; the pair subsequently consolidated at 1.0306, shedding 0.20%.
The pair was likely to find support at 1.0275, the low of September 30 and resistance at 1.0331, the session high.
The U.S. Congress passed a bill to reopen the government and raise the debt ceiling on Wednesday, just hours ahead of a deadline to avert a debt sovereign debt default.
The deal will fund the government until January 15 and raise the government borrowing limit until February 7. Both sides also agreed to talks over broad budget issues in an attempt to reach a longer-term deal by December 13.
Sentiment on the greenback was hit by fears that the impact of the U.S. government shutdown on the already fragile economic recovery would prompt the Fed to delay plans for rolling back its stimulus program until at least the start of next year.
The possibility of another debt crisis also loomed, as the temporary solution does not resolve the underlying budgetary issues dividing Republicans and Democrats.
Meanwhile, the U.S. Department of Labor said Thursday the number of individuals filing for initial jobless benefits last week declined by 15,000 to a seasonally adjusted 358,000 from a downwardly revised 373,000 in the preceding week.
Analysts had expected U.S. jobless claims to decline to 335,000 last week.
Elsewhere, the loonie, as the Canadian dollar is also known, was sharply lower against the euro, with EUR/CAD rising 0.78% to 1.4082.
The U.S. was to publish a report on the Philly Fed manufacturing index later Thursday.