Investing.com - The U.S. dollar ended the week at six year highs against the Canadian dollar on Friday, after data showed that Canada’s economy contracted more than expected in November.
USD/CAD hit highs of 1.2798, the most since March 2009, before easing back to 1.2732 in late trade, up 0.91% for the day.
The pair ended the week with gains of 2.51%. For January, the greenback jumped 9.56% against the loonie.
The Canadian dollar was hard-hit after Statistics Canada said the country's gross domestic product fell 0.2% in November, compared to expectations for a 0.1% downtick and after a 0.3% gain in October.
Meanwhile, in the U.S., the Commerce Department said in a report Friday that the economy expanded 2.6% in the final three months of 2014, below expectations for a 3.0% gain and slowing sharply from growth of 5.0% in the three months to September.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, ended the week at 95.00, down 0.01% for the day and 0.33% lower on the week.
The dollar had strengthened broadly on Thursday after the Federal Reserve indicated that interest rates could start to rise around mid-year.
Following its policy meeting on Wednesday, the Fed said it would keep rates on hold at least until June and reiterated its pledge to be patient on raising interest rates, while acknowledging the solid economic recovery and strong growth in the labor market.
In the week ahead, investors will be turning their attention to Friday’s U.S. nonfarm payrolls report for further indications on the strength of the recovery in the labor market.
Canadian employment data due on Friday will also be in focus.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, February 2
In the U.S., the Institute of Supply Management is to release data on manufacturing activity. The country will also produce a report on personal income and spending.
Tuesday, February 3
The U.S. is to release data on factory orders.
Wednesday, February 4
Canada is to publish its Ivey PMI.
The U.S. is to release a report on ADP nonfarm payrolls. Later in the day, the Institute of Supply Management is to release data on non-manufacturing activity.
Thursday, February 5
Canada is to report on its trade balance.
The U.S. is to produce its weekly report on initial jobless claims in addition to data on the trade balance.
Friday, February 6
Canada is to report on building permits and the change in the number of people employed and the unemployment rate.
The U.S. is to round up the week with the closely watched nonfarm payrolls report, and data on wage growth.