CAD Drops After US Weekly Jobless Claims

The Canadian dollar drifted lower against most major currencies in European deals on Thursday, as data showing increase in US weekly jobless claims hurt sentiment.

The Labor Department report showed that US initial jobless claims climbed to 344,000, an increase of 14,000 from the previous week’s revised level of 330,000. The increase came as a surprise to economists, who had expected jobless claims to dip to 320,000 from the 329,000 originally reported for the previous week.

Fall in oil prices also weighed on loonie. Oil for May delivery fell 1.54% or 1.54 cents to USD99.74 per barrel around 9:10 am ET .

The loonie slipped to a 2-day low of 93.00 against the yen, compared to yesterday’s closing value of 93.27. If the loonie extends slide, 92.00 is seen as the next support level.

The loonie that ended yesterday’s deals at 1.0961 against the greenback declined to a 2-day low of 1.0996. On the downside, 1.105 is likely seen as the next support level.

The loonie dropped to a 2-day low of 1.5260 against the euro, after having advanced to a 3-week high of 1.5202 on Wednesday. The next possible downside target for the loonie lies around the 1.54 mark.

via Kitco

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza