Forexpros – The U.S. dollar climbed to a three-day high against its Canadian counterpart on Thursday, as investors eyed developments at a European Union summit in Brussels which few expected to deliver fresh measures to tackle the debt crisis.
USD/CAD hit 1.0314 during early U.S. trade, the pair’s highest since Monday; the pair subsequently consolidated at 1.0309, gaining 0.61%.
The pair was likely to find support at 1.0230, the session low and resistance at 1.0353, the high of June 8.
Hopes that European leaders would make headway on dealing with the crisis dimmed after a German government official indicated that the summit would not result in any detailed decisions and warned against high expectations among investors ahead of the conclusion of the summit on Friday.
Earlier in the week, German Chancellor Angel Merkel reiterated her opposition to the idea of joint euro zone bonds, while EU Economic and Monetary Affairs Commissioner Olli Rehn said Wednesday that the summit would focus on short-term measures to stabilize markets and ease pressure on at-risk countries.
The loonie, as the Canadian dollar is also known, was weaker against the euro, with EUR/CAD rising 0.34% to 1.2822.
In the U.S., the Department of Labor said number of people who filed for unemployment assistance last week fell by 6,000 to a seasonally adjusted 386,000, compared to expectations for a decline of 7,000 to 385,000.
The previous week’s figure was revised up to 392,000 from a previously reported 387,000.
A separate report confirmed that the U.S. economy expanded at an annualized rate of 1.9% during the first quarter, in line with expectations.
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