Investing.com - The U.S. dollar ended the week lower against the Canadian dollar on Friday, after the release of better-than-forecast U.S. employment data, but losses were limited as uncertainty ahead of the U.S. presidential elections tempered risk appetite.
USD/CAD hit 0.9920 on Friday, the pair’s lowest since October 25; the pair subsequently consolidated at 0.9956, 0.18% lower for the week.
The pair is likely to find support at 0.9887, the low of October 24 and resistance at 1.0012, Thursday’s high.
The U.S. Department of Labor said the economy added 171,000 jobs in October, beating forecasts for an increase of 125,000. The unemployment rate ticked up to 7.9% from 7.8% in September as more people re-entered the labor force.
The stronger-than-expected data saw investor’s trim back expectations for another round of quantitative easing by the Federal Reserve, bolstering demand for the greenback.
Demand for the greenback continued to be underpinned by uncertainty over the outcome of Tuesday’s U.S. presidential elections, with opinion polls indicating a dead heat between President Barack Obama and Republican challenger Mitt Romney.
Investors are concerned over the U.S. fiscal cliff, approximately USD600 billion in tax hikes and spending cuts due to come into effect on January 1, which could threaten U.S. and global growth.
In Canada, official data on Wednesday showed that the economy contracted unexpectedly in August, due to declines in goods production, with manufacturing as well as mining, oil and gas extraction activity much weaker than expected.
Statistics Canada said gross domestic product contracted by 0.1% in August, disappointing expectations for growth of 0.2%.
Year-over-year, Canada’s economy expanded by 1.2% in August, missing expectations for growth of 1.7%.
In the coming week, investors will be anticipating the outcome of Tuesday’s U.S. presidential elections, as well as a speech by Bank of Canada Governor Mark Carney.
In addition, market participants will be awaiting any further developments in the handling of the debt crisis in the euro zone.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, November 4
Canada is to publish government data on building permits, an accurate indicator of future construction activity.
In the U.S., the Institute of Supply Management is to publish data on service sector activity.
Tuesday, November 6
Canada is to publish the Ivey PMI, a leading indicator of economic health.
In the U.S, voting in the U.S. presidential elections is to take place.
Wednesday, November 7
The U.S. is to publish government data on crude oil stockpiles. This data can be a big market mover for the Canadian dollar, due to the size of the country’s energy sector.
Thursday, November 8
Canada is to produce government data on the trade balance, as well as data on house price inflation. Later in the day, BoC Governor Mark Carney is to speak; his comments will be closely watched for any indications on the future possible direction of monetary policy.
Also Thursday, the U.S. is to publish official data on the trade balance as well as the weekly government report on initial jobless claims.
Friday, November 9
The U.S. is to round up the week with preliminary data from the University of Michigan on consumer sentiment, a leading indicator of economic health.
USD/CAD hit 0.9920 on Friday, the pair’s lowest since October 25; the pair subsequently consolidated at 0.9956, 0.18% lower for the week.
The pair is likely to find support at 0.9887, the low of October 24 and resistance at 1.0012, Thursday’s high.
The U.S. Department of Labor said the economy added 171,000 jobs in October, beating forecasts for an increase of 125,000. The unemployment rate ticked up to 7.9% from 7.8% in September as more people re-entered the labor force.
The stronger-than-expected data saw investor’s trim back expectations for another round of quantitative easing by the Federal Reserve, bolstering demand for the greenback.
Demand for the greenback continued to be underpinned by uncertainty over the outcome of Tuesday’s U.S. presidential elections, with opinion polls indicating a dead heat between President Barack Obama and Republican challenger Mitt Romney.
Investors are concerned over the U.S. fiscal cliff, approximately USD600 billion in tax hikes and spending cuts due to come into effect on January 1, which could threaten U.S. and global growth.
In Canada, official data on Wednesday showed that the economy contracted unexpectedly in August, due to declines in goods production, with manufacturing as well as mining, oil and gas extraction activity much weaker than expected.
Statistics Canada said gross domestic product contracted by 0.1% in August, disappointing expectations for growth of 0.2%.
Year-over-year, Canada’s economy expanded by 1.2% in August, missing expectations for growth of 1.7%.
In the coming week, investors will be anticipating the outcome of Tuesday’s U.S. presidential elections, as well as a speech by Bank of Canada Governor Mark Carney.
In addition, market participants will be awaiting any further developments in the handling of the debt crisis in the euro zone.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, November 4
Canada is to publish government data on building permits, an accurate indicator of future construction activity.
In the U.S., the Institute of Supply Management is to publish data on service sector activity.
Tuesday, November 6
Canada is to publish the Ivey PMI, a leading indicator of economic health.
In the U.S, voting in the U.S. presidential elections is to take place.
Wednesday, November 7
The U.S. is to publish government data on crude oil stockpiles. This data can be a big market mover for the Canadian dollar, due to the size of the country’s energy sector.
Thursday, November 8
Canada is to produce government data on the trade balance, as well as data on house price inflation. Later in the day, BoC Governor Mark Carney is to speak; his comments will be closely watched for any indications on the future possible direction of monetary policy.
Also Thursday, the U.S. is to publish official data on the trade balance as well as the weekly government report on initial jobless claims.
Friday, November 9
The U.S. is to round up the week with preliminary data from the University of Michigan on consumer sentiment, a leading indicator of economic health.