Investing.com - The U.S. dollar ended the week almost unchanged against its Canadian counterpart on Friday, remaining slightly below parity, as the improved outlook for the U.S. economy supported the currency of the nation’s largest trading partner.
USD/CAD hit 0.9880 on Tuesday, the pair’s lowest since March 9; the pair subsequently consolidated at 0.9915 by close of trade on Friday, dipping 0.09% over the week.
The pair is likely to find support at 0.9872, the low of March 9 and short-term resistance at 0.9947, Thursday’s high and a one-week high.
The greenback was almost unchanged against the Canadian dollar on Friday, after the Department of Labor said consumer price inflation rose 0.4% in February, in line with expectations, fueled largely by pricier gasoline.
Core inflation rates, which are stripped of volatile food and energy prices, rose 0.1%, below expectations for a gain of 0.2%.
Sentiment on the greenback was dented after U.S. industrial production numbers came in flat in February, below expectations for a 0.4% gain, while the University of Michigan’s consumer confidence index also disappointed, coming in at 74.3, below expectations for a reading of 75.7.
Meanwhile, the Canadian dollar shrugged off data showing that foreign investors sold a net CAD4.19 billion of Canadian securities in January, the first decline since June 2011 and the largest since July 2008.
The greenback had rallied against its major counterparts earlier in the week, as investors trimmed back expectations for another round of quantitative easing from the Fed after the central bank upgraded its outlook on the economy and acknowledged the recent improvement in the labor market.
However, policymakers reiterated their intention to keep the benchmark interest rate unchanged at a record low through late 2014 and warned that risks to the economic recovery still remained.
The Canadian dollar found support from higher oil prices last week, with light sweet crude futures for delivery in May settling at USD107.72 a barrel on the New York Mercantile Exchange by close of trade on Friday, gaining 0.55% over the week.
Raw materials, including oil account for about half of Canada’s export revenue.
In the week ahead, the U.S. is to release a flurry of data on the housing sector, which investors will be watching closely to gauge the strength of the economic recovery. Elsewhere, Canada is to publish official data on retail sales and consumer price inflation.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, March 19
Canada is to publish official data on wholesale sales, a leading indicator of consumer spending.
Tuesday, March 20
The U.S. is to produce official data on building permits, an excellent gauge of future construction activity, as well as data on housing starts, a leading indicator of economic health. Also Tuesday, Fed Chairman Ben Bernanke is to speak at an event in Washington; his comments will be closely watched for possible indications on the future direction of monetary policy.
Wednesday, March 21
Canada is to release data on an index of leading economic indicators, designed to predict the future direction of the economy.
The U.S. is to release industry data on existing home sales, a leading indicator of economic health, as well as official data on crude oil stockpiles.
Thursday, March 22
Canada is to produce official data on retail sales, the leading indicator of consumer spending, which accounts for the majority of overall economic activity.
Later in the day, the U.S. is to publish official data on initial jobless claims, a leading indicator of economic health. Also Thursday, Fed Chairman Ben Bernanke is to speak at an event in Washington; his comments will be closely watched for possible indications on the future direction of monetary policy.
Friday, March 23
Canada is to produce government data on consumer price inflation, which accounts for the majority of overall inflation.
The U.S. is to round up the week with official data on new home sales, a leading indicator of economic health.
USD/CAD hit 0.9880 on Tuesday, the pair’s lowest since March 9; the pair subsequently consolidated at 0.9915 by close of trade on Friday, dipping 0.09% over the week.
The pair is likely to find support at 0.9872, the low of March 9 and short-term resistance at 0.9947, Thursday’s high and a one-week high.
The greenback was almost unchanged against the Canadian dollar on Friday, after the Department of Labor said consumer price inflation rose 0.4% in February, in line with expectations, fueled largely by pricier gasoline.
Core inflation rates, which are stripped of volatile food and energy prices, rose 0.1%, below expectations for a gain of 0.2%.
Sentiment on the greenback was dented after U.S. industrial production numbers came in flat in February, below expectations for a 0.4% gain, while the University of Michigan’s consumer confidence index also disappointed, coming in at 74.3, below expectations for a reading of 75.7.
Meanwhile, the Canadian dollar shrugged off data showing that foreign investors sold a net CAD4.19 billion of Canadian securities in January, the first decline since June 2011 and the largest since July 2008.
The greenback had rallied against its major counterparts earlier in the week, as investors trimmed back expectations for another round of quantitative easing from the Fed after the central bank upgraded its outlook on the economy and acknowledged the recent improvement in the labor market.
However, policymakers reiterated their intention to keep the benchmark interest rate unchanged at a record low through late 2014 and warned that risks to the economic recovery still remained.
The Canadian dollar found support from higher oil prices last week, with light sweet crude futures for delivery in May settling at USD107.72 a barrel on the New York Mercantile Exchange by close of trade on Friday, gaining 0.55% over the week.
Raw materials, including oil account for about half of Canada’s export revenue.
In the week ahead, the U.S. is to release a flurry of data on the housing sector, which investors will be watching closely to gauge the strength of the economic recovery. Elsewhere, Canada is to publish official data on retail sales and consumer price inflation.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, March 19
Canada is to publish official data on wholesale sales, a leading indicator of consumer spending.
Tuesday, March 20
The U.S. is to produce official data on building permits, an excellent gauge of future construction activity, as well as data on housing starts, a leading indicator of economic health. Also Tuesday, Fed Chairman Ben Bernanke is to speak at an event in Washington; his comments will be closely watched for possible indications on the future direction of monetary policy.
Wednesday, March 21
Canada is to release data on an index of leading economic indicators, designed to predict the future direction of the economy.
The U.S. is to release industry data on existing home sales, a leading indicator of economic health, as well as official data on crude oil stockpiles.
Thursday, March 22
Canada is to produce official data on retail sales, the leading indicator of consumer spending, which accounts for the majority of overall economic activity.
Later in the day, the U.S. is to publish official data on initial jobless claims, a leading indicator of economic health. Also Thursday, Fed Chairman Ben Bernanke is to speak at an event in Washington; his comments will be closely watched for possible indications on the future direction of monetary policy.
Friday, March 23
Canada is to produce government data on consumer price inflation, which accounts for the majority of overall inflation.
The U.S. is to round up the week with official data on new home sales, a leading indicator of economic health.