The Canadian dollar edged lower against its U.S. counterpart on Thursday, on pace to snap a three-day streak of gains, as a rise in U.S. weekly jobless claims fueled risk aversion, helping lift the bruised U.S. dollar, and as oil prices eased.

The Canadian dollar was at C$1.3421 to the greenback, or 74.51 U.S. cents, weaker than Wednesday's close of C$1.3416, or 74.54 U.S. cents.

The number of Americans filing for unemployment benefits rose last week for the first time in nearly four months, suggesting the U.S. labor market was stalling amid a resurgence in new COVID-19 cases and depressed demand.

The U.S. dollar, which has come under pressure in recent weeks as investors' appetite for risk improved was broadly firm on Thursday. The U.S. dollar currency index was 0.03pc higher on the day.

"Risk sentiment diminished after disappointing news on America's job market renewed worries about the state of the world economy," said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington.

The loonie, which has been supported in recent sessions by rising oil prices, found little of that support on Thursday as oil prices edged lower on concerns about rising U.S. oil inventories and surging coronavirus cases.

On Thursday, Canadian government bond prices were mixed across the maturity curve.

The two-year yield was at 0.282pc up from 0.272pc late on Wednesday, while the benchmark Canadian 10-year yield slipped to 0.502pc from Wednesday's 0.51pc.