Investing.com - The U.S. rose against its Canadian counterpart on Thursday, but gains were capped by disappointing U.S. jobless claims data and as stronger oil prices continued to support demand for the commodity-linked Canadian currency.
USD/CAD hit 1.3473 during early U.S. trade, the session high; the pair subsequently consolidated at 1.3466, rising 0.34%.
The pair was likely to find support at 1.3382, Tuesday’s low and a nearly three-month trough and resistance at 1.3553, Tuesday’s high.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending February 27 increased by 6,000 to 278,000 from the previous week’s total of 272,000. Analysts expected jobless claims to fall by 1,000 to 271,000 last week.
Market participants were eyeing the release of upcoming reports on U.S. service sector activity and factory orders for further indications on the strength of the economy.
Meanwhile, oil prices continued to be supported above $34 a barrel, which lent support to the Canadian dollar.
The loonie was lower against the euro, with EUR/CAD advancing 0.64% to 1.4680.