On Thursday, the US dollar rose to a new one-month high against the Canadian Dollar after statistical data showed that the number of applications for unemployment benefits in the US remained at a two-month high last week, but still suggests the strengthening of the US labor market.
During the European trading session, the USD/CAD pair reached 1.3339, the highest level since October 1; the pair subsequently consolidated at 1.3338, rising 0.54%.
The pair is likely to receive support at 1.3152, the low of November 6 and resistance at 1.3432, the high of September 30.
The US Labor Department said the number of individuals filing for initial jobless benefits in the week ending November 7 has not changed compared to 276 000 the previous week. Analysts had expected jobless claims to fall 6000 to 270 000.
Demand for the dollar persists after the release on Friday of positive US employment data that increased the chance of raising interest rates in December by Fed.
Market participants turned their attention to the speech in the course of the session of Fed Chairman, Janet Yellen, hoping to get new hints on the timing of a possible rate hike.
Meanwhile, the Canadian dollar remains under pressure because of lower oil prices. At the opening of US trading, crude oil futures for December delivery fell 2.47% to $ 41.88.
Canadian dollar went also down against the euro; EUR/CAD pair rose 0.44% to 1.4315.
The growth of the single currency is stagnated after European Central Bank President, Mario Draghi, said the central bank "will review the degree of accommodative monetary policy" at its meeting in December.
Speaking in the European Parliament, Draghi said that the dynamics of inflation have eased, and the "sustainable recovery" of inflation may take longer than expected.
The US Dollar Index, which shows the relationship of the US dollar against a basket of major currencies, rose 0.12% to 99.19, being traded at seven-month high of Tuesday at 99.60.