- The U.S. dollar fell to session lows against the Canadian dollar on Thursday after data showed that Canada’s current account narrowed more than expected in the first quarter.

USD/CAD touched lows of 1.0851 and was last down 0.15% to 1.0858.

The pair was likely to find support at 1.0815 and resistance at 1.0900.

Statistics Canada said the country’s current account deficit narrowed to C$12.4 billion in the first quarter from a deficit of C$15.6 billion in the preceding three months. Analysts had expected Canada’s current account deficit to narrow to C$13.0 billion.

In the U.S., updated data showed that the economy slowed sharply in the first three months of the year, while a separate report showed a larger than expected decline in initial jobless claims.

The Commerce Department reported that U.S. gross domestic product contracted 1.0% in the first quarter, after the preliminary estimate showed growth of 0.1%. Market expectations had been for a 0.5% contraction.

It was the first decline in U.S. GDP since the first quarter of 2011.

However the report also indicated that economic activity has since rebounded. Consumer spending, which makes up more than two-thirds of economic activity, increased by 3.1%, up from the preliminary estimate of 3.0%.

At the same time, the Department of Labor said the number of people who filed for unemployment assistance in the U.S. last week fell by 27,000 to 300,000, compared to expectations for a decline of 9,000.

Elsewhere, the loonie, as the Canadian dollar is also known, was almost unchanged against the euro, with EUR/CAD dipping 0.05% to 1.4775.

The euro remained under pressure amid mounting expectations that the European Central Bank will ease monetary policy at its upcoming meeting next week, in order to safeguard the fragile recovery in the euro area.

Please LIKE our Facebook page - it makes us stronger