USD/CAD pares losses after U.S. jobless claims, PPI reports

NEW YORK (Forex News Now) – The Canadian dollar pared gains versus its U.S. counterpart on Thursday, following mixed U.S. data on producer price inflation and unemployment claims and upbeat data on Canada’s trade deficit.

In European late morning currency market trading, USD/CAD hit 1.0023, down 0.12 percent on the day, after rising slightly from a fresh 5-month low of 0.9979.

Official data showed earlier that U.S. initial jobless claims rose more than forecast last week and the U.S. trade deficit widened more than expected in September.

However, the reports were offset somewhat by upbeat data on U.S. producer price inflation, which rose unexpectedly in September.

According to intraday analysis, USD/CAD was likely to touch support around the low of April 21, 0.993, and encounter immediate resistance around Wednesday’s high, 1.0105.

Also Thursday, Canada’s statistics agency said the country’s trade deficit dropped to CAD -1.4 billion, down from a revised -2.6 billion in July. Analysts had expected a more modest decline to CAD -2.2 billion in August, two major currency market trading news outlets reported.

Elsewhere, the loonie fell versus the euro: EUR/CAD traded at 1.4098, up 0.64 percent, according to intraday analysis.