US dollar was trading lower against its Canadian counterpart on Thursday, following the release of the weekly report on initial jobless claims out of the United States and amid the ongoing uncertainty over the future of Federal Reserves stimulus program.
USD/CAD slid to a session low at 1.0393 at 13:24 GMT, after which consolidation followed at 1.0396, still down by 0.26% for the day. Support was expected at August 7th low, 1.0366, while resistance was to be encountered at August 7th high, 1.0443.
Earlier today the Labor Department of the United States reported that the number of people, who filed for unemployment assistance, distanced from the recorded five-year low, but still implied that labour market in the country was gradually improving. Initial jobless claims rose by 5 000 to seasonally adjusted 333 000 during the week ended on August 3rd. Experts had anticipated a larger increase to 335 000 claims. During the preceding week the number of claims was revised up to 328 000 from 326 000 previously. The average number of claims during the last four weeks, an indicator that lacks seasonal effects, decreased by 6 250 to 335 500, the lowest number since November 2007. Weekly lay-offs increased sharply during the recession period, but since then they have been declining at a steady rate. This might be a signal that companies felt confident enough about economy to keep their staff. On the other hand, this could also be in favor of consumer confidence, as employees would be sure they will not lose their jobs.
Meanwhile, it became clear that new housing price index (NHPI) in Canada rose at a faster pace than expected, by 0.2% in June on a monthly basis and by 1.8% on annual basis. Preliminary estimates pointed that prices will increase by 0.1%. Monthly house prices decreased in 5 out of 21 cities.
Elsewhere, the loonie, as Canadian dollar is also known, was little changed against the euro, with EUR/CAD dipping a mere 0.01% to trade at 1.3902. GBP/CAD was also with a slight change, ticking down 0.02% to trade at 1.6142.