Investing.com - The Canadian dollar was higher against its U.S. counterpart on Friday, paring a weekly loss after stronger-than-expected domestic jobs data fuelled expectations for an interest rate hike by the Bank of Canada in the coming months.
USD/CAD hit 0.9953 on Friday, the pair’s highest since May 8; the pair subsequently consolidated at 1.0002 by close of trade, 0.46% lower on the week.
The pair is likely to find support at 0.9953, Friday’s low and resistance at 1.0053, Friday’s high.
Statistics Canada said Friday that the country’s economy added 58,200 jobs in April following an increase of 82,300, the previous month, which was the biggest gain in almost four years.
Economists had forecast an increase of around 7,000 jobs in April.
But investors remained risk adverse amid concerns that the ongoing political turmoil in Greece could result in the country’s eventual exit from the euro area.
On Friday, Alexis Tsipras the head of Greece’s largest anti-bailout party Syriza rejected a coalition with Socialists and Conservatives, fuelling concerns over the country’s ability to abide by the terms of its EUR130 billion bailout agreement.
Rating agency Fitch warned Friday that it would place the ratings of all euro zone members on review pending possible downgrades, if Greece was to exit the euro zone as a result of its current crisis.
Meanwhile, speculation over the health of Spain’s troubled banking system and the government’s ability to cut one of the largest deficits in the euro area also weighed on market sentiment.
The greenback also found support after U.S. data showed that consumer confidence hit a more than four-year high in May.
The University of Michigan said that its index of consumer sentiment rose to 77.8, from a reading of 76.4 in April, defying expectations for an unchanged reading.
A separate report showed that U.S. producer price inflation fell unexpectedly in April.
In the week ahead, investors will be watching developments in Greece as well as the first talks between the new French President Francois Hollande and German Chancellor Angela Merkel, amid fears that Hollande’s focus on growth rather than austerity measures as a means to tackle the euro zone crisis could spark tensions with Germany.
In addition, the U.S. is to produce government data on retail sales and inflation, while the Federal Reserve is to publish the minutes of this month’s policy setting meeting.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, May 14
The U.S. is to produce a report on mortgage delinquencies, an important signal of the housing market’s health.
Tuesday, May 15
The U.S. is to publish official data on retail sales, the leading indicator of consumer spending, which accounts for the majority of overall economic activity. The country is also to publish official data on consumer price inflation, which accounts for a majority of overall inflation. Reports on manufacturing activity in New York, as well as U.S. net long-term securities transactions and business inventories are also due for release.
Wednesday, May 16
Canada is to produce official data on manufacturing sales, a key indicator of economic health.
The U.S. is to produce official data on building permits and housing starts, followed by reports by the Federal Reserve on the capacity utilization rate and industrial production. Government data is also to be released on crude oil inventories ahead of the minutes of the Fed’s latest policy meeting.
Thursday, May 17
Canada is to publish official data on foreign securities purchases and wholesale sales, a leading indicator of consumer spending.
Meanwhile, the U.S. is to produce government data on unemployment claims, followed by a report on manufacturing activity in the Philadelphia area.
Friday, May 18
Canada is to release a government report on consumer price inflation, which accounts for the majority of overall inflation.
Also Friday, members of the Group of Eight nations are to begin talks in Camp David, hosted by U.S. President Barak Obama.
USD/CAD hit 0.9953 on Friday, the pair’s highest since May 8; the pair subsequently consolidated at 1.0002 by close of trade, 0.46% lower on the week.
The pair is likely to find support at 0.9953, Friday’s low and resistance at 1.0053, Friday’s high.
Statistics Canada said Friday that the country’s economy added 58,200 jobs in April following an increase of 82,300, the previous month, which was the biggest gain in almost four years.
Economists had forecast an increase of around 7,000 jobs in April.
But investors remained risk adverse amid concerns that the ongoing political turmoil in Greece could result in the country’s eventual exit from the euro area.
On Friday, Alexis Tsipras the head of Greece’s largest anti-bailout party Syriza rejected a coalition with Socialists and Conservatives, fuelling concerns over the country’s ability to abide by the terms of its EUR130 billion bailout agreement.
Rating agency Fitch warned Friday that it would place the ratings of all euro zone members on review pending possible downgrades, if Greece was to exit the euro zone as a result of its current crisis.
Meanwhile, speculation over the health of Spain’s troubled banking system and the government’s ability to cut one of the largest deficits in the euro area also weighed on market sentiment.
The greenback also found support after U.S. data showed that consumer confidence hit a more than four-year high in May.
The University of Michigan said that its index of consumer sentiment rose to 77.8, from a reading of 76.4 in April, defying expectations for an unchanged reading.
A separate report showed that U.S. producer price inflation fell unexpectedly in April.
In the week ahead, investors will be watching developments in Greece as well as the first talks between the new French President Francois Hollande and German Chancellor Angela Merkel, amid fears that Hollande’s focus on growth rather than austerity measures as a means to tackle the euro zone crisis could spark tensions with Germany.
In addition, the U.S. is to produce government data on retail sales and inflation, while the Federal Reserve is to publish the minutes of this month’s policy setting meeting.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, May 14
The U.S. is to produce a report on mortgage delinquencies, an important signal of the housing market’s health.
Tuesday, May 15
The U.S. is to publish official data on retail sales, the leading indicator of consumer spending, which accounts for the majority of overall economic activity. The country is also to publish official data on consumer price inflation, which accounts for a majority of overall inflation. Reports on manufacturing activity in New York, as well as U.S. net long-term securities transactions and business inventories are also due for release.
Wednesday, May 16
Canada is to produce official data on manufacturing sales, a key indicator of economic health.
The U.S. is to produce official data on building permits and housing starts, followed by reports by the Federal Reserve on the capacity utilization rate and industrial production. Government data is also to be released on crude oil inventories ahead of the minutes of the Fed’s latest policy meeting.
Thursday, May 17
Canada is to publish official data on foreign securities purchases and wholesale sales, a leading indicator of consumer spending.
Meanwhile, the U.S. is to produce government data on unemployment claims, followed by a report on manufacturing activity in the Philadelphia area.
Friday, May 18
Canada is to release a government report on consumer price inflation, which accounts for the majority of overall inflation.
Also Friday, members of the Group of Eight nations are to begin talks in Camp David, hosted by U.S. President Barak Obama.