Daily Afternoon Report 12.01.2017

The U.S. dollar pared losses against its Canadian counterpart on Thursday, helped by the release of a positive U.S. jobless claims report, but the greenback was still hovering at a three-month low as rising oil prices supported the commodity-related Canadian currency.

The greenback found some support after the U.S. Department of Labor said initial jobless claims in the week ending January 7 increased by 10,000 to 247,000 from the previous week’s total of 237,000 which was revised from an initial reading of 235,000.

Analysts had expected jobless claims to rise by 20,000 last week.

But the U.S. dollar was still under broad selling pressure since Donald Trump failed to offer details on his promises to boost fiscal spending and cut taxes at a highly-anticipated news conference on Wednesday.

In Canada, data on Thursday showed that the new housing price index rose 0.2% in November, disappointing expectations for a 0.3% gain, after an increase of 0.4% the previous month.

But the Canadian dollar was boosted by rallying oil prices on Thursday, amid signs major oil producers are keeping their promise to cut production levels.