Forex – USD/CAD At Fresh 4-Month Lows After U.S., Canadian Data

© Reuters. Greenback drops against loonie in early trade – The U.S. dollar was trading at a fresh four-month low against its Canadian counterpart on Thursday, despite the release of positive U.S. data and a more disappoiting economic report from Canada as demand for the greenback remained under heavy pressure.

was down 0.29% at 1.2308 by 09:30 a.m. ET (13:30 GMT), the lowest since September.

The U.S. Labor Department reported on Thursday that initial jobless claims increased by 17,000 to 233,000 in the week ending January 20, compared to expectations for an increase to 236,000.

But the greenback remained under broad selling pressure after White House officials on Tuesday said that President Trump was planning on using his speech at the World Economic Forum in Davos on Friday to underline his “America First” policies.

Such policies include a potential withdrawal from the North American free-trade agreement and disavowing the global climate change accord.

The U.S. dollar was also hit after, in Davos on Wednesday, Treasury Secretary Mnuchin said that the weaker dollar was positive for American trade.

In Canada, data showed that retail sales rose less than expected in November.

However, the commodity-related Canadian dollar found some support in rising oil prices, which were hovering at fresh three-year highs on Thursday thanks to news of a 10th weekly decline in inventories.

The loonie was lower against the euro, with gainig 0.28% to 1.5361.

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