Investing.com - The Canadian dollar slumped to three-week lows against the U.S. dollar on Friday as a selloff in world oil prices overshadowed stronger-than-expected data on Canadian third quarter growth.
USD/CAD rose to highs of 1.1444, the most since November 7 and was last up 0.74% to 1.1414. For the week, the pair gained 1.64%.
The US dollar index, which measures the greenback against a basket of six major currencies, was up 0.45% to 88.41 late Friday, not far from the four-year highs of 88.52 set on Monday.
Oil prices tumbled on Friday following Thursday’s decision by the Organization of the Petroleum Exporting Countries to keep its production quotas unchanged, fuelling fears over a global supply glut.
The steep declines in oil prices overshadowed data Friday showing that Canada’s economy grew at a stronger rate than forecast in the last quarter, boosted by rising exports and increased consumer spending and business investment.
Statistics Canada reported that gross domestic product expanded at an annual rate of 2.8% in the third quarter, outstripping economists forecasts for growth of 2.1%.
Exports were up 2.2% and household spending rose 0.7%, while business investment in residential structures rose 3.0%, the fastest pace since the first quarter of 2012 the report said.
In the week ahead, investors will be focusing on the outcome of a policy meeting of the Bank of Canada on Wednesday, which is to be followed by jobs report for both the U.S. and Canada on Friday.
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, December 1
In the U.S., the Institute of Supply Management is to release data on manufacturing activity.
Wednesday, December 3
The BoC is to announce its benchmark interest rate and publish its rate statement, which outlines economic conditions and the factors affecting the monetary policy decision.
The U.S. is to release the ADP report on private sector job creation, while the ISM is to publish a report on U.S. service sector activity later in the day.
Thursday, December 4
The U.S. is to release the weekly report on initial jobless claims.
Canada is to publish its Ivey PMI.
Friday, December 5
Canada is to publish data on the change in the number of people employed and the unemployment rate, as well as a separate report on the trade balance.
The U.S. is to round up the week with the closely watched government report on nonfarm payrolls, the unemployment rate and average earnings, as well as a report on factory orders.