Investing.com - The U.S. dollar ended almost unchanged against the Canadian dollar in choppy trade on Friday, following the release of mixed Canadian data on inflation and retail sales.
USD/CAD ended Friday’s session at 1.0517, after rising as high as 1.0568 earlier, the highest level since July 9. For the week, the pair gained 0.88%.
The pair is likely to find support at 1.0470 and resistance at 1.0600.
The U.S. dollar initially rose to session highs against the Canadian dollar after data showed that the annual rate of inflation in Canada fell to a five-month low in October, reinforcing the view that the Bank of Canada will keep rates on hold for longer.
Statistics Canada said the annual rate of consumer inflation slowed to 0.7% in October from 1.1% in September, on the back of lower gasoline prices. Economists had expected the annual rate of inflation to tick down to 1.0%.
Core inflation, which excludes more volatile items, slowed to 1.2% from 1.3% in September, compared to expectations for 1.0%.
But the Canadian dollar rebounded against the greenback after a separate report showed that Canadian retail sales rose more strongly than forecast in September due to higher motor vehicle sales.
Retail sales rose 1.0% to CAD40.7 billion Statistics Canada said, beating expectations for a 0.5% increase.
Demand for the U.S. dollar continued to be underpinned after Wednesday’s minutes of the Federal Reserve’s October meeting said the bank could start scaling back its USD85 billion-a-month asset purchase program in the “coming months” if the economy continues to improve as expected.
In the week ahead, the U.S. is to release a series of reports on the housing sector, as well as data on consumer confidence and durable goods orders. Meanwhile, Canada is to release official data on economic growth rates.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, November 25
The U.S. is to release private sector data on pending home sales, a leading indicator of economic health.
Tuesday, November 26
The U.S. is to produce data on building permits, a leading indicator of future construction activity as well as a report on housing starts. The nation is also to release private sector data on consumer confidence and house price inflation.
Wednesday, November 27
The U.S. is to release data on durable goods orders, a leading indicator of production, as well as a report on manufacturing activity in the Chicago region and revised data on consumer sentiment. The Labor Department is to release the weekly report on initial jobless claims one day ahead of schedule due to Thursday’s Thanksgiving holiday.
Thursday, November 28
Canada is to release data on the current account and a separate report on raw materials price inflation.
Markets in the U.S. will be closed for the Thanksgiving holiday.
Friday, November 29
Canada is to round up the week with the monthly report on gross domestic product, the broadest indicator of economic activity and the leading measure of the economy’s health.
USD/CAD ended Friday’s session at 1.0517, after rising as high as 1.0568 earlier, the highest level since July 9. For the week, the pair gained 0.88%.
The pair is likely to find support at 1.0470 and resistance at 1.0600.
The U.S. dollar initially rose to session highs against the Canadian dollar after data showed that the annual rate of inflation in Canada fell to a five-month low in October, reinforcing the view that the Bank of Canada will keep rates on hold for longer.
Statistics Canada said the annual rate of consumer inflation slowed to 0.7% in October from 1.1% in September, on the back of lower gasoline prices. Economists had expected the annual rate of inflation to tick down to 1.0%.
Core inflation, which excludes more volatile items, slowed to 1.2% from 1.3% in September, compared to expectations for 1.0%.
But the Canadian dollar rebounded against the greenback after a separate report showed that Canadian retail sales rose more strongly than forecast in September due to higher motor vehicle sales.
Retail sales rose 1.0% to CAD40.7 billion Statistics Canada said, beating expectations for a 0.5% increase.
Demand for the U.S. dollar continued to be underpinned after Wednesday’s minutes of the Federal Reserve’s October meeting said the bank could start scaling back its USD85 billion-a-month asset purchase program in the “coming months” if the economy continues to improve as expected.
In the week ahead, the U.S. is to release a series of reports on the housing sector, as well as data on consumer confidence and durable goods orders. Meanwhile, Canada is to release official data on economic growth rates.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, November 25
The U.S. is to release private sector data on pending home sales, a leading indicator of economic health.
Tuesday, November 26
The U.S. is to produce data on building permits, a leading indicator of future construction activity as well as a report on housing starts. The nation is also to release private sector data on consumer confidence and house price inflation.
Wednesday, November 27
The U.S. is to release data on durable goods orders, a leading indicator of production, as well as a report on manufacturing activity in the Chicago region and revised data on consumer sentiment. The Labor Department is to release the weekly report on initial jobless claims one day ahead of schedule due to Thursday’s Thanksgiving holiday.
Thursday, November 28
Canada is to release data on the current account and a separate report on raw materials price inflation.
Markets in the U.S. will be closed for the Thanksgiving holiday.
Friday, November 29
Canada is to round up the week with the monthly report on gross domestic product, the broadest indicator of economic activity and the leading measure of the economy’s health.