Investing.com - The Canadian dollar pushed higher against the U.S. dollar on Friday, boosted by a stronger-than-expected economic report and higher oil prices, while soft U.S. data weighed on the greenback.
USD/CAD was at 1.2446 in late trade, off 0.49% for the day.
The loonie was boosted after official data showed that Canadian manufacturing sales rose 1.7% to C$52.39 billion in December. Economists had forecasts a decline of 0.9%.
The Canadian dollar received an additional boost from a rally in oil prices on Friday, amid speculation that productions cuts by drillers in the U.S and global oil companies will alleviate a glut in supplies.
U.S. crude price rose 3%, while international benchmark Brent oil rose above $60 a barrel for the first time this year. Canada is a major oil exporter and the Canadian dollar is sensitive to fluctuations in oil prices.
The greenback weakened after data on Friday showed that U.S. consumer sentiment unexpectedly deteriorated in February.
The preliminary reading of the University of Michigan’s consumer sentiment index fell to 93.6, down from January’s final reading of 98.1. Economists had forecast an unchanged figure.
The report came a day after data showing that U.S. retail sales unexpectedly fell 0.8% last month after dropping 0.9% in December, indicating that consumer spending remained sluggish at the start of the year.
The weak data prompted investors to trim back long positions in the greenback ahead of a three-day holiday weekend.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was little changed at 94.24 late Friday, and ended the week down 0.5%.
In the coming week, investors will be focusing on Wednesday’s minutes of the latest Federal Reserve meeting for further indications on when the Fed may start to hike interest rates.
Friday’s report on Canadian retail sales 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.
Monday, February 16
Markets in the U.S. are to remain closed for the Presidents Day holiday.
Tuesday, February 17
Canada is to release data on foreign securities purchases.
The U.S. is to release data on manufacturing activity in New York State as well as a private sector survey of home builders.
Wednesday, February 18
Canada is to release data on wholesale sales.
The U.S. is to release a string of economic reports, including data on producer prices, housing starts, building permits and industrial production. Later in the day, the Federal Reserve is to publish the minutes of its January meeting.
Thursday, February 19
The U.S. is to publish a report on manufacturing activity in the Philadelphia region and the weekly government figures on initial jobless claims.
Friday, February 20
Canada is to produce data on retail sales.
The U.S. is to round up the week with preliminary data on manufacturing activity.