Investing.com – The U.S. dollar trimmed losses against its Canadian counterpart on Thursday, after the European Central Bank’s surprise decision to cut interest rates, while political instability in Greece weighed on risk appetite.
USD/CAD pulled back from 1.0052, the pair’s lowest since Tuesday, to hit 1.0113 during early U.S. trade, still down 0.22%.
The pair was likely to find support at 0.9972, Tuesday’s low and resistance at 1.0215, the days high.
The ECB cut its benchmark interest rate from 1.5% to 1.25%, as the region’s escalating debt crisis overshadowed concerns over persistently high inflation.
In Greece, Prime Minister George Papandreou’s government was on the brink of collapse after several ministers said they did not support his plan for a referendum on the bailout agreement for the country, agreed on last week.
Market sentiment had been boosted by speculation that the referendum could be cancelled, ahead of a vote of confidence in Prime Minister Papandreou’s government on Friday.
The greenback was almost unchanged earlier, after the U.S. Department of Labor said that jobless claims rose less-than-expected last week, climbing by 397,000 after a 406,000 increase the previous week. Analysts had expected jobless claims to rise by 401,000 last week.
The Canadian dollar was also higher against the euro, with EUR/CAD shedding 0.21% to hit 1.3904.
Also Thursday, new ECB President Mario Draghi was to chair his first post policy-meeting press conference, while the U.S. was to release a report on service sector activity from the Institute of Supply Management.
USD/CAD pulled back from 1.0052, the pair’s lowest since Tuesday, to hit 1.0113 during early U.S. trade, still down 0.22%.
The pair was likely to find support at 0.9972, Tuesday’s low and resistance at 1.0215, the days high.
The ECB cut its benchmark interest rate from 1.5% to 1.25%, as the region’s escalating debt crisis overshadowed concerns over persistently high inflation.
In Greece, Prime Minister George Papandreou’s government was on the brink of collapse after several ministers said they did not support his plan for a referendum on the bailout agreement for the country, agreed on last week.
Market sentiment had been boosted by speculation that the referendum could be cancelled, ahead of a vote of confidence in Prime Minister Papandreou’s government on Friday.
The greenback was almost unchanged earlier, after the U.S. Department of Labor said that jobless claims rose less-than-expected last week, climbing by 397,000 after a 406,000 increase the previous week. Analysts had expected jobless claims to rise by 401,000 last week.
The Canadian dollar was also higher against the euro, with EUR/CAD shedding 0.21% to hit 1.3904.
Also Thursday, new ECB President Mario Draghi was to chair his first post policy-meeting press conference, while the U.S. was to release a report on service sector activity from the Institute of Supply Management.