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Forex - USD/CAD weekly outlook: June 16 - 20

Published 06/15/2014, 08:54 AM
U.S. dollar falt against Canadian dollar on Friday
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Investing.com - The Canadian dollar was flat against the U.S. dollar on Friday despite higher oil prices as a result of a Sunni insurgency in Iraq.

USD/CAD was at 1.0855 late Friday, almost unchanged for the day. For the week, the pair was down 0.45%.

The pair was likely to find support at 1.0821, the low of May 30 and resistance at 1.0905, Wednesday’s high.

Brent oil prices rose to a nine-month high on Friday amid concerns over the ongoing Sunni insurgency in Iraq, fueling fears over the impact of reduced output from one of the world's largest crude oil producers.

Brent crude hit a session high of $114.07 a barrel and U.S. crude oil went as high as $107.68 during the session.

While higher oil prices normally boost the commodity-linked Canadian dollar, the flight to safety arising from the conflict and fears over the impact on global economic growth offset that.

The greenback showed little reaction after data showed that U.S. consumer sentiment unexpectedly deteriorated in June.

The preliminary reading of the University of Michigan's consumer sentiment index for June came in at 81.2, down from 81.9 in May, missing expectations for an uptick to 83.0.

The report came a day after data showed that U.S. retail sales rose less than expected in May, but the previous month was revised higher.

The Commerce Department said Thursday that U.S. retail sales rose 0.3% in May, falling short of expectations for a 0.6% gain. However, retail sales for April were revised up to a 0.5% gain from a previously reported increase of 0.1%.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was flat at 80.75 late Friday.

In the week ahead, investors will be focusing on the outcome of Wednesday’s Federal Reserve policy meeting, while Friday’s Canadian data on inflation and 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, June 16

Canada is to publish a report on foreign securities purchases.

The U.S. is to produce data on industrial production and manufacturing activity in the Empire State.

Tuesday, June 17

The U.S. is to produce data on housing starts, building permits and consumer prices.

Wednesday, June 18

Canada is to produce data on wholesale sales.

Later Wednesday, the Federal Reserve is to announce its federal funds rate and publish its rate statement. The announcement is to be followed by a press conference with Fed Chair Janet Yellen.

Thursday, June 19

The U.S. is to publish the weekly report on initial jobless claims as well as a report on manufacturing activity in the Philadelphia region.

Friday, June 20

Canada is to round up the week with data on consumer inflation and retail sales.

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