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Forex - USD/CAD trims losses on jobless claims report

Published 10/02/2014, 09:33 AM
Greenback eases off session lows vs. loonie on positive U.S. data
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Investing.com - The U.S. dollar trimmed losses against its U.S. counterpart on Thursday, after the release of upbeat U.S. jobless claims data and as markets turned their focus to Friday's report on U.S. nonfarm payrolls.

USD/CAD pulled away from 1.1072, the pair's lowest since September 25, to hit 1.1136 during early U.S. trade, still down 0.26%.

The pair was likely to find support at 1.1052, the low of September 25 and resistance at 1.1225, Wednesday's high and a six-month high.

In a report, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending September 27 decreased by 8,000 to 287,000 from the previous week’s revised total of 295,000.

Analysts had expected jobless claims to rise by 2,000 to 297,000 last week.

The data came after payroll processor ADP on Wednesday said that the U.S. private sector added 213,000 jobs last month, slightly ahead of expectations for jobs growth of 210,000.

Investors were now looking ahead to Friday’s U.S. nonfarm payrolls report, which was expected to show that the economy added more than 200,000 jobs for a sixth successive month in August.

The loonie was lower against the euro, with EUR/CAD adding 0.15% to 1.4109.

Speaking at the European Central Bank's post-policy meeting press conference, Mario Draghi said that the ECB will begin purchasing asset-backed securities in the fourth quarter of 2014, which will last for two years.

The ECB will also launch a covered bond purchasing program in mid-October, aimed at boosting inflation.

In addition, the ECB said it was maintaining its benchmark interest rate at a record-low 0.05%, in line with market expectations.

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