Daily Afternoon Report 21.04.2016
The greenback edged higher against its Canadian counterpart on Thursday, after the release of mixed U.S. economic reports although rising oil prices still lent support to the commodity-related Canadian currency.
USD/CAD hit 1.2628 during early U.S. trade, the session low; the pair subsequently consolidated at 1.2678, adding 0.18%.
The pair was likely to find support at 1.2594, Wednesday’s low and a nine-month low and resistance at 1.2799, Tuesday’s high.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefitsin the week ending April 16 decreased by 6,000 to 24,000 from the previous week’s total of 253,000. Analysts had expected jobless claims to rise by 10,000 to 263,000 last week.
Separately, the Federal Reserve Bank of Philadelphia said its manufacturing index fell to -1.6 this month from March’s reading of 12.4. Economists had expected a more modest decline to 8.9.
Meanwhile, the Canadian dollar found support as oil prices rose to their highest level since November after the International Energy Agency said 2016 would see the biggest fall in non-OPEC production in a generation.
The loonie was lower against the euro, with EUR/CAD advancing 0.84% to 1.4418.
The single currency strengthened after European Central Bank President Mario Draghi said interest rates should remain at present or lower levels for an extended period of time.
Draghi also said that the central bank expects the economic recovery to continue, although global risks continue to weigh.
The comments came after the ECB left its benchmark interest rate unchanged at a record-low 0.0%, in line with forecasts.