Forexpros – The U.S. dollar slid to a two-month low against its Canadian counterpart on Thursday, as robust corporate earnings and rising crude oil prices bolstered demand for higher-yielding assets.
USD/CAD hit 1.0067 during early U.S. trade, the pair’s lowest since March 16; the pair subsequently consolidated at 1.0077, shedding 0.25%.
The pair was likely to find support at 0.9991, the low of March 14 and resistance at 1.0105, the session high.
Investor sentiment was buoyed by upbeat corporate earnings, which lifted global equities markets and boosted demand for riskier assets.
The Canadian dollar also found support from higher crude oil prices, with crude futures for delivery in September jumping 1.74% on the New York Mercantile Exchange, to trade at USD91.71 a barrel.
Raw materials, including oil account for about half of Canada’s export revenue.
Meanwhile, investors were looking ahead to the outcome of a German vote on approving the country’s part in bailout package for Spanish banks later in the day.
The greenback remained little changed after the U.S. Department of Labor said the number of people who filed for unemployment assistance in the U.S. last week rose by 34,000 to a seasonally adjusted 386,000, compared to expectations for an increase to 365,000.
In Canada, official data showed that wholesale sales rose by 0.9% in May, easily beating expectations for a 0.2% increase and gaining for the fourth consecutive month.
The loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD shedding 0.58% to hit 1.2336.
Later Thursday, the U.S. was to publish data on existing home sales and manufacturing activity in Philadelphia.
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