Investing.com - The U.S. dollar rose against its Canadian counterpart on Thursday, as expectations for a December rate hike in the U.S. continued to support despite the release of disappointing U.S. jobless claims data.
USD/CAD hit 1.3181 during early U.S. trade, the session high; the pair subsequently consolidated at 1.3175, adding 0.20%.
The pair was likely to find support at 1.3041, Wednesday's low and resistance at 1.3240, the high of October 29.
The U.S. Department of Labor reported on Thursday that the number of individuals filing for initial jobless benefits in the week ending October 31 increased by 16,000 to 276,000 from the previous week’s total of 260,000. Analysts had expected jobless claims to rise by 2,000 to 262,000.
But the greenback remained supported after Federal Reserve Chair Janet Yellen said on Wednesday that a December rate hike is a "live possibility," depending on the data.
Investors were turning their attention to Friday's U.S. nonfarm payrolls report for further indications on the strength of the job market.
The loonie was lower against the euro, with EUR/CAD rising 0.39% to 1.4345.
Earlier Thursday, official data showed that German factory orders dropped 1.7% in September, confounding expectations for an increase of 1.0%, after a 1.8% decline the previous month.