Investing.com - The Canadian dollar was lower against the U.S. dollar on Friday after data showed that the U.S. nonfarm payrolls report for July fell short of expectations.
USD/CAD touched highs of 1.0944 on Friday, the most since June 6, before pulling back to 1.0915 at the close, ending the session 0.11% higher.
The Labor Department reported that that U.S. economy added 209,000 jobs in July, below forecasts for jobs growth of 233,000. The previous month’s figure was revised up to a gain of 298,000 from a previously reported increase of 288,000.
Although it was the sixth successive month that the U.S. economy added more than 200,000 jobs, the unemployment rate unexpectedly ticked up to 6.2% from 6.1% in June. In addition, wage growth was flat, pointing to underlying slack in the economy.
The data prompted investors to trim back expectations on the timing of a possible rate hike by the Federal Reserve.
The greenback had rallied earlier in the week, as strong economic data underlined the view that the recovery is gaining momentum. Official data on Wednesday showed that U.S. GDP expanded at an annual rate of 4.0% in the three months to June, outstripping forecasts of 3.0%.
The Fed also upgraded its view on the economy on Wednesday, but reiterated that considerable slack still remains in the labor market.
Investors remained risk adverse after a selloff in U.S. equities markets on Thursday, fuelled by fears over Argentina’s sovereign debt default. Concerns over heightened geopolitical tensions between the West and Russia following the downing of an airliner over Ukraine last month also weighed on sentiment.
In the week ahead, investors will be awaiting Friday’s Canadian jobs report for July, while Tuesday’s report on U.S. service sector activity will also be in focus.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, August 4
Markets in Canada are to remain closed for a national holiday.
Tuesday, August 5
The U.S. is to publish data on factory orders, while the Institute of Supply Management is to release data on service sector growth.
Wednesday, August 6
Both the U.S. and Canada are to publish data on the trade balance, the difference in value between imports and exports.
Thursday, August 7
Canada is to produce reports on building permits and the Ivey PMI.
The U.S. is to publish the weekly report on initial jobless claims.
Friday, August 8
Canada is to release data on the change in the number of people unemployed and the unemployment rate.