Forex – USD/CAD Trims Gains After Downbeat U.S. Data

Greenback pulls back from 2-week highs vs. loonie – The U.S. dollar trimmed gains against its Canadian counterpart on Thursday, after downbeat U.S. economic reports sent the greenback broadly lower, while disappointing data from Canada limited the local currency’s gains.

was little changed at 1.2552 by 09:30 a.m. ET (13:30 GMT), off two-week highs of 1.2590 hit earlier in the day.

The U.S. Department of Labor reported on Thursday that initial jobless claims increased to last week, compared to expectations for a drop to 246,000.

A separate report showed that the producer price index fell 0.1% last month, confounding expectations for a 0.2% rise.

The U.S. dollar gained ground earlier Thursday after China’s foreign exchange regulator said that a report about g may be based on erroneous information and could be “fake”.

The greenback initially dropped after Bloomberg reported that Chinese officials reviewing foreign-exchange holdings had recommended slowing or halting purchases of U.S. bonds. China is the largest foreign holder of U.S. government debt.

In Canada, official data showed that the new housing price index ticked up in November, less than the expected 0.2% increase and after a 0.1% rise the previous month.

The loonie was lower against the euro, with up 0.79% at 1.5108.

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