Investing.com - The U.S. dollar trimmed gains against the Canadian dollar on Thursday after official data showed that the number of people who filed for unemployment assistance in the U.S. rose last week.
USD/CAD pulled back from 1.0380, the pair’s highest since June 5, to hit 1.0343 during early U.S. trade, still up 0.70%.
The pair was likely to find support at 1.0265, the session low and resistance at 1.0387, the high of May 30.
The Department of Labor said the number of individuals filing for initial jobless benefits last week rose by 18,000 to a seasonally adjusted 354,000, compared to expectations for an increase of 4,000 to 340,000.
Demand for the dollar continued to be underpinned after the Federal Reserve said Wednesday it could start scaling back its bond buying program by the end of the year
Fed Chairman Ben Bernanke said the bank could begin tapering its USD85 billion-a-month asset purchase program later this year and wind it down completely by the middle of 2014 if the economy picks up as the central bank expects.
The bank said it expects the U.S. economy to grow between 2.3% and 2.6% in 2013. The Fed also said it expects the unemployment rate to fall to between 6.5% and 6.8% by the end of 2014 and inflation to edge closer to its 2% target.
The loonie, as the Canadian dollar is also known, was slightly lower against the euro, with EUR/CAD easing up 0.14% to 1.3672.
The U.S. was to release data on existing home sales and the Philly Fed manufacturing index later in the trading day.