Greenback gains ground vs. loonie, U.S. data supportsGreenback gains ground vs. loonie, U.S. data supports

Investing.com – The U.S. dollar rose against its Canadian counterpart on Thursday, helped by the release of upbeat U.S. economic reports, although climbing oil prices also lent support to the commodity-related Canadian currency.

USD/CAD was up 0.33% at 1.2212 by 09:30 a.m. ET (13:30 GMT).

The greenback strengthened after the U.S. Commerce Department said consumer price inflation rose more than expected in August.

The strong data added was seen as increasing chances of an additional rate hike by the Federal Reserve this year.

A separate report showed that initial jobless claims unexpectedly declined to 284,000 last week, adding to optimism over the strength of the economy.

The dollar also remained supported amid hopes a tax reform would soon be implemented by the administration, after U.S. President Donald Trump reached out to both Democrats and Republicans this week.

Trump said on Twitter Wednesday “the biggest Tax Cut & Tax Reform package in the history of our country will soon begin. Move fast Congress!”

But the Canadian dollar benefitted from a sharp rally in oil prices, still supported by a report released on Wednesday saying that global oil supplies fell for the first time in four months in August.

In Canada, data on Thursday showed that the new housing price index rose by 0.4% in July, beating expectations for an uptick of 0.3% and after a 0.2% gain the previous month.

The loonie was lower against the euro, with EUR/CAD rising 0.28% to 1.4508.

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