Investing.com - The U.S. dollar was lower against the Canadian dollar on Friday amid expectations that the Federal Reserve will maintain its easy money policies for longer a day after Federal Reserve Chairwoman nominee Janet Yellen voiced support for stimulus.
USD/CAD ended Friday’s session at 1.0438, down from Thursday’s close of 1.0461. For the week, the pair was down 0.32%.
The pair was likely to find support at 1.0404, the low of November 7 and resistance at 1.0483, Friday’s high.
The greenback turned lower after testimony from Federal Reserve Vice Chairwoman Janet Yellen on Thursday was seen as cementing the view that the bank will keep its USD85 billion-a-month asset purchase program in place until early next year.
Ms. Yellen said it was "imperative" that the Fed does everything in its power to ensure a robust recovery. She said the quantitative easing program would not continue indefinitely but the timescale for reducing it would be data dependent.
The comments came during a Senate confirmation hearing to take over from Ben Bernanke as head of the central bank in February.
Sentiment on the greenback was also hit by unexpectedly weak U.S. manufacturing data on Friday.
The Federal Reserve’s Empire state manufacturing index fell to -2.21 this month from 1.52 in October. Economists had forecast a rise to 5.0.
A separate report showed that U.S. industrial production fell 0.1% in October, after rising by 0.7% in September, compared to expectations for a 0.2% increase.
The Canadian dollar received an additional boost after data showed that domestic manufacturing sales rose to the highest level since June 2012 in September, due largely to higher sales in the motor vehicle assembly and food industries.
Statistics Canada said manufacturing sales rose 0.6% to CAD49.9 billion in September, the fourth increase in five months.
In the week ahead, investors will be closely watching Wednesday’s minutes of the Fed’s most recent policy setting meeting. Both the U.S. and Canada are to release data on retail sales and consumer prices.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, November 18
Canada is to publish a report on foreign securities purchases.
The U.S. is to release private sector data on the outlook for the housing sector.
Tuesday, November 19
The U.S. is to release data on the employment cost index, an important inflationary indicator.
Wednesday, November 20
Canada is to produce data on wholesale sales, a leading indicator of consumer spending.
The U.S. is to release a series of data including a report on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity. The nation is also to publish data on consumer inflation, existing home sales and business inventories.
Later Wednesday, the Fed is to publish what will be the closely watched minutes of its latest policy meeting.
Thursday, November 21
The U.S. is release data on producer price inflation, as well as the weekly report on initial jobless claims. The U.S. is also to release data manufacturing activity from the Philly Fed.
Friday, November 22
Canada is to round up the week with reports on retail sales and consumer inflation.
USD/CAD ended Friday’s session at 1.0438, down from Thursday’s close of 1.0461. For the week, the pair was down 0.32%.
The pair was likely to find support at 1.0404, the low of November 7 and resistance at 1.0483, Friday’s high.
The greenback turned lower after testimony from Federal Reserve Vice Chairwoman Janet Yellen on Thursday was seen as cementing the view that the bank will keep its USD85 billion-a-month asset purchase program in place until early next year.
Ms. Yellen said it was "imperative" that the Fed does everything in its power to ensure a robust recovery. She said the quantitative easing program would not continue indefinitely but the timescale for reducing it would be data dependent.
The comments came during a Senate confirmation hearing to take over from Ben Bernanke as head of the central bank in February.
Sentiment on the greenback was also hit by unexpectedly weak U.S. manufacturing data on Friday.
The Federal Reserve’s Empire state manufacturing index fell to -2.21 this month from 1.52 in October. Economists had forecast a rise to 5.0.
A separate report showed that U.S. industrial production fell 0.1% in October, after rising by 0.7% in September, compared to expectations for a 0.2% increase.
The Canadian dollar received an additional boost after data showed that domestic manufacturing sales rose to the highest level since June 2012 in September, due largely to higher sales in the motor vehicle assembly and food industries.
Statistics Canada said manufacturing sales rose 0.6% to CAD49.9 billion in September, the fourth increase in five months.
In the week ahead, investors will be closely watching Wednesday’s minutes of the Fed’s most recent policy setting meeting. Both the U.S. and Canada are to release data on retail sales and consumer prices.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, November 18
Canada is to publish a report on foreign securities purchases.
The U.S. is to release private sector data on the outlook for the housing sector.
Tuesday, November 19
The U.S. is to release data on the employment cost index, an important inflationary indicator.
Wednesday, November 20
Canada is to produce data on wholesale sales, a leading indicator of consumer spending.
The U.S. is to release a series of data including a report on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity. The nation is also to publish data on consumer inflation, existing home sales and business inventories.
Later Wednesday, the Fed is to publish what will be the closely watched minutes of its latest policy meeting.
Thursday, November 21
The U.S. is release data on producer price inflation, as well as the weekly report on initial jobless claims. The U.S. is also to release data manufacturing activity from the Philly Fed.
Friday, November 22
Canada is to round up the week with reports on retail sales and consumer inflation.