Investing.com – Last week saw the Canadian dollar advance against its U.S. counterpart for the first time in four weeks as crude oil, the nations largest export rallied to a 2-year high amid signs of a global economic recovery.
USD/CAD hit 1.0002 on Friday, the pair’s lowest since November 11; the pair subsequently consolidated at 1.0040 by close of trade on Friday, advancing 1.22% over the week.
The pair is likely to find support at 0.9977, the low of November 11 and resistance at 1.0189, last Friday’s high.
Crude oil rallied after official data showed China’s manufacturing grew at the fastest rate in seven months.
On Tuesday, official data showed that Canada’s gross domestic product grew at a less-than-forecast 1% annualized rate in the third quarter after revised gains of 2.3% in the preceding quarter. Analysts had expected a third quarter gain of 1.5%.
A separate report showed that Canadian employers added 15,200 jobs in November after an increase of 3,000 in the previous month. Economists had forecast a gain of 19,800. The unemployment rate unexpectedly dropped to 7.6%, from 7.9% in October.
Meanwhile, U.S. data showed that non-farm payrolls rose 39,000 last month, much weaker than expectations for 140,000 new jobs. The unemployment rate also rose to 9.8%, close to a 26-year high.
Next week, the U.S. is to release key weekly data on initial jobless claims, as well as a report on the country’s trade balance and preliminary data on consumer sentiment. Meanwhile, Federal Reserve Chairman, Ben Bernanke, is to appear in a televised interview.
Elsewhere, the Bank of Canada is to announce its benchmark interest rate, while the country is to publish official data on construction sector activity, trade balance and manufacturing growth.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, December 6
In the U.S., Federal Reserve Chairman, Ben Bernanke is due to speak about monetary policy in an interview to be aired on CBS. The interview was given a week earlier.
Canada is to publish official data on the number of building permits issued in the previous month, a leading indicator of growth in the construction sector. The country is also to release key data on manufacturing activity, a leading indicator of economic health.
Tuesday, December 7
The U.S. is to publish the IBD/TIPP index of economic optimism while later in the day the country is to publish official data on consumer credit.
The Bank of Canada is to announce its benchmark interest rate and publish its rate statement, which discusses the economic outlook and offers clues on the outcome of future rate decisions.
Wednesday, December 8
Canada is to publish official data on housing starts, a leading indicator of economic health.
Meanwhile, the U.S. is to publish official data on crude oil inventories. This data can be a major market mover for the loonie, due to the large volume of Canada’s crude oil exports.
Thursday, December 9
The U.S. is to release key weekly data on initial jobless claims, a leading indicator of economic health, as well as reports on wholesale inventories and natural gas storage.
In addition, Canada is to publish official data on new house prices, a leading indicator of the housing industry's health.
Friday, December 10
The U.S. is to round up the week with official data on its trade balance, federal budget balance and import prices. The country is also set to publish preliminary data from the University of Michigan on consumer sentiment and inflation expectations.
Meanwhile, Canada is to release official data on the country’s trade balance, the difference in value between imported and exported good over the month.
USD/CAD hit 1.0002 on Friday, the pair’s lowest since November 11; the pair subsequently consolidated at 1.0040 by close of trade on Friday, advancing 1.22% over the week.
The pair is likely to find support at 0.9977, the low of November 11 and resistance at 1.0189, last Friday’s high.
Crude oil rallied after official data showed China’s manufacturing grew at the fastest rate in seven months.
On Tuesday, official data showed that Canada’s gross domestic product grew at a less-than-forecast 1% annualized rate in the third quarter after revised gains of 2.3% in the preceding quarter. Analysts had expected a third quarter gain of 1.5%.
A separate report showed that Canadian employers added 15,200 jobs in November after an increase of 3,000 in the previous month. Economists had forecast a gain of 19,800. The unemployment rate unexpectedly dropped to 7.6%, from 7.9% in October.
Meanwhile, U.S. data showed that non-farm payrolls rose 39,000 last month, much weaker than expectations for 140,000 new jobs. The unemployment rate also rose to 9.8%, close to a 26-year high.
Next week, the U.S. is to release key weekly data on initial jobless claims, as well as a report on the country’s trade balance and preliminary data on consumer sentiment. Meanwhile, Federal Reserve Chairman, Ben Bernanke, is to appear in a televised interview.
Elsewhere, the Bank of Canada is to announce its benchmark interest rate, while the country is to publish official data on construction sector activity, trade balance and manufacturing growth.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, December 6
In the U.S., Federal Reserve Chairman, Ben Bernanke is due to speak about monetary policy in an interview to be aired on CBS. The interview was given a week earlier.
Canada is to publish official data on the number of building permits issued in the previous month, a leading indicator of growth in the construction sector. The country is also to release key data on manufacturing activity, a leading indicator of economic health.
Tuesday, December 7
The U.S. is to publish the IBD/TIPP index of economic optimism while later in the day the country is to publish official data on consumer credit.
The Bank of Canada is to announce its benchmark interest rate and publish its rate statement, which discusses the economic outlook and offers clues on the outcome of future rate decisions.
Wednesday, December 8
Canada is to publish official data on housing starts, a leading indicator of economic health.
Meanwhile, the U.S. is to publish official data on crude oil inventories. This data can be a major market mover for the loonie, due to the large volume of Canada’s crude oil exports.
Thursday, December 9
The U.S. is to release key weekly data on initial jobless claims, a leading indicator of economic health, as well as reports on wholesale inventories and natural gas storage.
In addition, Canada is to publish official data on new house prices, a leading indicator of the housing industry's health.
Friday, December 10
The U.S. is to round up the week with official data on its trade balance, federal budget balance and import prices. The country is also set to publish preliminary data from the University of Michigan on consumer sentiment and inflation expectations.
Meanwhile, Canada is to release official data on the country’s trade balance, the difference in value between imported and exported good over the month.