Investing.com - The Canadian dollar ended Friday’s session higher against the U.S. dollar, after data showed that the Canadian economy grew more than forecast in the final three months of 2013, while U.S. growth was revised lower.
USD/CAD hit lows of 1.1039, the weakest since February 19 and was last down 0.53% to 1.1062.
The pair is likely to find support at 1.0990 and resistance at 1.1145, Friday’s high.
The loonie, as the Canadian dollar is also known, was boosted after Statistics Canada reported that the economy expended 2.9% from a year earlier in the fourth quarter, ahead of forecasts for a 2.6% gain.
However, the report also showed that the Canadian economy contracted by a larger-than-forecast 0.5% in December, as severe winter weather acted as a drag on growth.
The U.S. dollar weakened after the Commerce Department reported that U.S. fourth quarter gross domestic product was revised down to an annual rate of 2.4%, from a preliminary estimate of 3.2%. Analysts had expected a downward revision to 2.5%.
Earlier in the week, Fed Chair Janet Yellen acknowledged recent weakness in U.S. data, saying it indicates softness in the economy.
In testimony to the Senate banking committee in Washington, Ms. Yellen said it was hard to say how much the recent soft data was due to weather and added that the bank would be attentive to signals on whether the recovery is progressing in line with expectations.
In the week ahead, investors will be anticipating Friday’s U.S. nonfarm payrolls report for an indication of the strength of the recovery in the labor market.
Wednesday’s rate review and policy statement by the Bank of Canada will also be closely watched.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets. The guide skips Tuesday, as there are no relevant events on this day.
Monday, March 3
Canada is to produce data on raw material price inflation.
The U.S. is to release data on personal spending, while the Institute of Supply Management is to release data on manufacturing activity.
Wednesday, March 5
The BoC is to announce its benchmark interest rate and publish its monetary policy statement, which outlines economic conditions and the factors affecting the bank’s decision.
The U.S. is to release the ADP report on private sector job creation, which leads the government’s nonfarm payrolls report by two days. Meanwhile, the ISM is to publish a report service sector activity.
Thursday, March 6
The U.S. is to publish the weekly report on initial jobless claims and data on factory orders.
Canada is to publish a report on building permits and the Ivey PMI.
Friday, March 7
Canada is to publish data on the change in the number of people employed and the unemployment rate, as well as a report on the trade balance.
The U.S. is to round up the week with the closely watched government data on nonfarm payrolls and the unemployment rate.