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    USD/CAD edges higher but upside seen limited

    The U.S. dollar edged up against its Canadian counterpart on Thursday, as investors still remained cautious after Britain surprised markets by voting to leave the European Union, although upbeat Canadian economic growth data limited the greenback’s gains.

    USD/CAD hit 1.2997 during early U.S. trade, the session high; the pair subsequently consolidated at 1.2953, adding 0.14%.

    The pair was likely to find support at 1.2714, the low of June 24 and resistance at 1.3108, the high of June 28.

    Markets were still recovering from record losses posted amid fears that a Brexit could hit investment in the U.K. economy, threaten London's role as a global financial capital and usher in a period of slower global economic growth.

    The President of the European Council Donald Tusk said on Wednesday that there was a "calm and serious discussion" about the consequences of the vote.

    He also reiterated that there would be no negotiations with the U.K on any future relationship until the country formally notified the EU of its intention to withdraw.

    In the U.S., the Department of Labor said the number of individuals filing for initial jobless benefits in the week ending June 25 rose by 10,000 to 268,000 from the previous week’s total of 258,000. Analysts expected jobless claims to increase by 9,000 to 267,000 last week.

    At the same time, official data showed that Canada’s gross domestic product rose 0.1% in April, in line with expectations, and after a 0.2% contraction the previous month.

    A separate report showed that Canada’s raw materials prices index increased by 6.7% in May, exceeding expectations for a 5.0% gain, after a 0.7% rise the previous month.

    The loonie was higher against the euro, with EUR/CAD easing 0.08% to 1.4383.


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