Investing.com - The U.S. dollar pulled back from three-and-a-half year highs against the Canadian dollar on Thursday after data showed that U.S. jobless claims rose to the highest level since March.
USD/CAD rose to highs of 1.0726, the strongest level since May 2010, but was last up just 0.06% to 1.0702.
The pair was likely to find support at 1.0680 and resistance at 1.0750.
The U.S. dollar trimmed gains after official data on Thursday showed that initial jobless claims rose to a nine month high last week, sparking concerns over the recovery in the labor market.
The number of people claiming unemployment assistance in the week ending December 14 increased by 10,000 to a seasonally adjusted 379,000 the Labor Department said.
Analysts had expected U.S. jobless claims to fall by 35,000 to 334,000 last week from the previous week’s revised total of 369,000.
The data came one day after the Federal Reserve announced that it would reduce its USD85 billion-a-month bond buying program by USD10 billion in January.
In his last press conference as Fed Chairman Ben Bernanke said the economy was continuing to make progress.
The U.S. central bank reiterated that interest rates are likely to remain low even after the unemployment rate drops below 6.5%, the threshold at which the Fed has previously said it would start to consider rate increases.
Elsewhere, the loonie, as the Canadian dollar is also known, was almost unchanged against the euro, with EUR/CAD dipping 0.04% to 1.4633.
USD/CAD rose to highs of 1.0726, the strongest level since May 2010, but was last up just 0.06% to 1.0702.
The pair was likely to find support at 1.0680 and resistance at 1.0750.
The U.S. dollar trimmed gains after official data on Thursday showed that initial jobless claims rose to a nine month high last week, sparking concerns over the recovery in the labor market.
The number of people claiming unemployment assistance in the week ending December 14 increased by 10,000 to a seasonally adjusted 379,000 the Labor Department said.
Analysts had expected U.S. jobless claims to fall by 35,000 to 334,000 last week from the previous week’s revised total of 369,000.
The data came one day after the Federal Reserve announced that it would reduce its USD85 billion-a-month bond buying program by USD10 billion in January.
In his last press conference as Fed Chairman Ben Bernanke said the economy was continuing to make progress.
The U.S. central bank reiterated that interest rates are likely to remain low even after the unemployment rate drops below 6.5%, the threshold at which the Fed has previously said it would start to consider rate increases.
Elsewhere, the loonie, as the Canadian dollar is also known, was almost unchanged against the euro, with EUR/CAD dipping 0.04% to 1.4633.