Investing.com - The U.S. dollar fell to three-week lows against the Canadian dollar on Friday following the release of stronger-than-forecast Canadian inflation data, while an unexpected rate cut by China’s central bank and higher oil prices also boosted the commodity exposed Canadian dollar.
USD/CAD fell to lows of 1.1191, before pulling back to 1.1231 in late trade, off 0.63% for the day.
The Canadian dollar was boosted after Statistics Canada reported that the annual rate of inflation rose to a one year high of 2.4% in October, up from 2.0% in September and compared to expectations for an unchanged reading.
The robust data was seen as increasing the likelihood that the Bank of Canada would have to adjust expectations while making monetary policy decisions.
The loonie, as the Canadian dollar is also known, received an additional boost after China’s central bank unexpectedly cut interest rates for the first time in more than two years on Friday.
The move came in response to recent signs of a slowdown in the world’s second-largest economy.
Oil prices moved higher following China’s rate cut, which fuelled hopes for increased demand for raw materials, including oil.
Oil prices also found support amid growing expectations that the Organization of the Petroleum Exporting Countries may decide to curb production at its upcoming meeting next week.
Oil prices have been falling since June pressured lower by concerns that global production will outstrip demand.
In the week ahead, the U.S. is to release a string of economic reports on Wednesday ahead of Thursday’s Thanksgiving holiday, including a look at unemployment claims and durable goods orders. Tuesday’s report on Canadian retail sales and Friday’s data on economic growth 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. The guide skips Monday, as there are no relevant events on this day.
Tuesday, November 25
Canada is to release data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity.
The U.S. is to release revised data on third quarter gross domestic product and a report on consumer confidence.
Wednesday, November 26
The U.S. is to release a flurry of data ahead of Thursday’s holiday, including reports on durable goods orders, unemployment claims, personal income and spending, as well as reports on new and pending home sales and revised data on consumer sentiment.
Thursday, November 27
Markets in the U.S. are to remain closed for the Thanksgiving Holiday.
Canada is to publish data on the current account.
Friday, November 28
Canada is to round up the week with its monthly GDP report.