Investing.com - The Canadian dollar moved higher against the U.S. dollar on Friday, firming up following less dovish than expected comments from Bank of Canada Governor Stephen Poloz.
USD/CAD ended Friday’s session at 1.0581, down 0.53% after rising as high as 1.0670 earlier. For the week, the pair was down 0.50%.
The pair is likely to find support at 1.0559, Thursday’s low and resistance at 1.0655, Thursday’s high.
The Canadian dollar was boosted after Poloz said on Thursday that rates were likely to stay where they are "for some time," quelling speculation that the sluggish inflation outlook would prompt the Bank of Canada to cut rates.
The U.S. dollar touched session highs in early trade on Friday after Thursday’s stronger-than-forecast U.S. retail sales data for November added to signs that the economic recovery is deepening.
The upbeat data fuelled expectations for a small reduction in the pace of the Federal Reserve’s USD85 billion-a-month asset purchase program at its upcoming policy meeting.
An agreement on a two-year U.S. budget deal was also seen as removing an obstacle to the winding back of monetary stimulus.
Sentiment on the greenback was dented after data on Friday showed that U.S. producer price inflation fell 0.1% in November.
The soft inflation data did little to alter expectations that the Fed will begin withdrawing stimulus in the next few months after the latest U.S. nonfarm payrolls report showed that the U.S. economy added more jobs than expected in November.
In the week ahead, investors will be focusing on Wednesday’s outcome of the Fed’s monthly policy meeting, and a press conference with Chairman Ben Bernanke will be closely watched.
Meanwhile, Canada is to release data on consumer prices and retail sales on Friday.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, December 16
Canada is to publish a report on foreign securities purchases.
The U.S. is to release reports on industrial production, manufacturing activity in the New York region and the balance of foreign and domestic investment in U.S. securities.
Tuesday, December 17
Canada is to produce data on manufacturing sales, a leading indicator of economic health.
The U.S. is to release data on consumer inflation and the current account.
Wednesday, December 18
Canada is to produce data on wholesale sales, a leading indicator of consumer spending.
The U.S. is to release data on building permits, a leading indicator of future construction activity, and housing starts.
The Federal Reserve is to announce its federal funds rate and publish its rate statement, which outlines economic conditions and the factors affecting the monetary policy decision. The U.S. central bank is also to publish its economic projections for the next two years. The rate announcement is to be followed by a press conference with Chairman Ben Bernanke.
Thursday, December 19
The U.S. is to publish data on existing home sales, manufacturing activity in the Philadelphia region and initial jobless claims.
Friday, December 20
Canada is to release data on consumer inflation and retail sales.
The U.S. is to round up the week with revised data on third quarter GDP.
USD/CAD ended Friday’s session at 1.0581, down 0.53% after rising as high as 1.0670 earlier. For the week, the pair was down 0.50%.
The pair is likely to find support at 1.0559, Thursday’s low and resistance at 1.0655, Thursday’s high.
The Canadian dollar was boosted after Poloz said on Thursday that rates were likely to stay where they are "for some time," quelling speculation that the sluggish inflation outlook would prompt the Bank of Canada to cut rates.
The U.S. dollar touched session highs in early trade on Friday after Thursday’s stronger-than-forecast U.S. retail sales data for November added to signs that the economic recovery is deepening.
The upbeat data fuelled expectations for a small reduction in the pace of the Federal Reserve’s USD85 billion-a-month asset purchase program at its upcoming policy meeting.
An agreement on a two-year U.S. budget deal was also seen as removing an obstacle to the winding back of monetary stimulus.
Sentiment on the greenback was dented after data on Friday showed that U.S. producer price inflation fell 0.1% in November.
The soft inflation data did little to alter expectations that the Fed will begin withdrawing stimulus in the next few months after the latest U.S. nonfarm payrolls report showed that the U.S. economy added more jobs than expected in November.
In the week ahead, investors will be focusing on Wednesday’s outcome of the Fed’s monthly policy meeting, and a press conference with Chairman Ben Bernanke will be closely watched.
Meanwhile, Canada is to release data on consumer prices and retail sales on Friday.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, December 16
Canada is to publish a report on foreign securities purchases.
The U.S. is to release reports on industrial production, manufacturing activity in the New York region and the balance of foreign and domestic investment in U.S. securities.
Tuesday, December 17
Canada is to produce data on manufacturing sales, a leading indicator of economic health.
The U.S. is to release data on consumer inflation and the current account.
Wednesday, December 18
Canada is to produce data on wholesale sales, a leading indicator of consumer spending.
The U.S. is to release data on building permits, a leading indicator of future construction activity, and housing starts.
The Federal Reserve is to announce its federal funds rate and publish its rate statement, which outlines economic conditions and the factors affecting the monetary policy decision. The U.S. central bank is also to publish its economic projections for the next two years. The rate announcement is to be followed by a press conference with Chairman Ben Bernanke.
Thursday, December 19
The U.S. is to publish data on existing home sales, manufacturing activity in the Philadelphia region and initial jobless claims.
Friday, December 20
Canada is to release data on consumer inflation and retail sales.
The U.S. is to round up the week with revised data on third quarter GDP.