Investing.com – The U.S. dollar dropped to a fresh 27-month low against its Canadian counterpart on Thursday, after the release of downbeat U.S. data fueled concerns over the outlook for the economy and even as data in Canada was equally weak.
USD/CAD retreated 0.50% to 1.2165 by 09:30 a.m. ET (13:30 GMT), just off a fresh 27-month low of 1.2151 hit immediately after the release the U.S. Labor Department reported that initial jobless claims rose more than expected to 298,000 last week.
The data came a day after a brief sigh of relief on the U.S. political front.
On Wednesday, President Donald Trump concluded a surprise deal with Democrats in Congress to extend the debt ceiling, providing government funding until December 15 and potentially avoiding an unprecedented default on U.S. government debt.
In Canada, data on Thursday showed that building permits dropped 3.5% in July, compared to expectations for a 1.5% decline.
Building permits in June were revised to a 4.4% gain from a previously estimated 2.5% rise.
The loonie was lower against the euro, with EUR/CAD gaining 0.38% to trade at 1.4623.
The single currency strengthened broadly after the European Central Bank left interest rates unchanged on Thursday, in a widely expected move.
Commenting on the decision, ECB President Mario Draghi said that the central bank’s outlook for growth and inflation in the euro area remained “broadly unchanged”.
He added that recent euro volatility was a source of uncertainty and that the ECB will decide on the “calibration” of policy measures in the autumn.