Investing.com – Last week saw the Canadian dollar reach parity against its U.S. counterpart for the first time since April, but then pared gains to close the week unchanged following remarks by Federal Reserve Chairman Ben Bernanke on the outlook for further monetary easing.
USD/CAD hit 0.9979 on Thursday, the pair's lowest since April 26; the pair subsequently consolidated at 1.0100 by close of trade on Friday, easing up 0.005% over the week.
The pair is likely to find support at 0.9970, the low of April 26, and resistance at 1.0182, the high of October 12.
The loonie’s gains came after the minutes of the September 21 meeting of the Federal Open Market Committee showed that "many participants" believed "it would be appropriate to provide additional monetary policy accommodation" if unemployment remained too high or inflation too low.
But the loonie pared gains on Friday after Fed Chairman Bernanke said that while there was a case for further monetary easing, any action would be "contingent on incoming information about the economic outlook and financial conditions."
Meanwhile, official data released on Thursday showed that Canada’s trade deficit narrowed more-than-expected in August.
Next week, the U.S. is to release key weekly data on initial jobless claims, as well as important data on building permits, housing starts, manufacturing activity and foreign investment while the Federal Reserve is to publish its Beige Book.
Meanwhile, the Bank of Canada is to announce its benchmark interest rate and publish its monetary policy report, which will be followed by a closely watched press conference. Later in the week, Canada will publish official data on retail sales and inflation.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect USD/CAD.
Monday, October 18
The U.S. will being the week by publishing official data on the difference in value between foreign long-term securities purchased by U.S. citizens and U.S. long-term securities purchased by foreigners. The country is also to release official data on the capacity utilization rate as well as data on industrial production, a leading indicator of economic health.
Meanwhile, Canada is to publish data on foreign securities purchases, a strong driver of currency demand.
Tuesday, October 19
The U.S. is to publish official data on building permits and housing starts, both leading indicators of health in the housing sector.
Also Tuesday, the Bank of Canada is to announce its benchmark interest rate, which will be followed with a closely watched rate statement.
Wednesday, October 20
In the U.S., the Federal Reserve is to release its Beige Book, a summary of the data the bank examines before setting the benchmark interest rate. The U.S. is also set to produce data on crude oil inventories. The report on crude oil inventories can be a big market mover for the loonie, as Canada is the largest foreign supplier of crude oil to the U.S.
Meanwhile, Canada is to produce key data on wholesale sales. Later in the day, the Bank of Canada will publish its closely watched monetary policy report at a press conference. The report provides a valuable insight for traders into the bank's view of economic conditions and inflation.
Thursday, October 21
The U.S. is to release key weekly data on initial jobless claims, while the Federal Reserve Bank of Philadelphia is due to release a report on the city’s manufacturing sector. The country is also due to publish an index of leading economic indicators, designed to predict the future direction of the economy.
Also Thursday, the President of the Federal Reserve Bank of St Louis, James Bullard is to speak at a public engagement. His comments will be closely watched for any clues to the future direction of monetary policy.
Elsewhere, Canada is to publish an index of leading economic indicators, designed to predict the future direction of the economy.
Friday, October 22
The President of the Federal Reserve Bank of Kansas, Thomas Hoenig is to speak at a public engagement.
Meanwhile, Canada is to end the week by releasing key data on consumer price inflation, a leading indicator of economic growth, as well data on retail sales, a leading indicator of overall consumer spending.
USD/CAD hit 0.9979 on Thursday, the pair's lowest since April 26; the pair subsequently consolidated at 1.0100 by close of trade on Friday, easing up 0.005% over the week.
The pair is likely to find support at 0.9970, the low of April 26, and resistance at 1.0182, the high of October 12.
The loonie’s gains came after the minutes of the September 21 meeting of the Federal Open Market Committee showed that "many participants" believed "it would be appropriate to provide additional monetary policy accommodation" if unemployment remained too high or inflation too low.
But the loonie pared gains on Friday after Fed Chairman Bernanke said that while there was a case for further monetary easing, any action would be "contingent on incoming information about the economic outlook and financial conditions."
Meanwhile, official data released on Thursday showed that Canada’s trade deficit narrowed more-than-expected in August.
Next week, the U.S. is to release key weekly data on initial jobless claims, as well as important data on building permits, housing starts, manufacturing activity and foreign investment while the Federal Reserve is to publish its Beige Book.
Meanwhile, the Bank of Canada is to announce its benchmark interest rate and publish its monetary policy report, which will be followed by a closely watched press conference. Later in the week, Canada will publish official data on retail sales and inflation.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect USD/CAD.
Monday, October 18
The U.S. will being the week by publishing official data on the difference in value between foreign long-term securities purchased by U.S. citizens and U.S. long-term securities purchased by foreigners. The country is also to release official data on the capacity utilization rate as well as data on industrial production, a leading indicator of economic health.
Meanwhile, Canada is to publish data on foreign securities purchases, a strong driver of currency demand.
Tuesday, October 19
The U.S. is to publish official data on building permits and housing starts, both leading indicators of health in the housing sector.
Also Tuesday, the Bank of Canada is to announce its benchmark interest rate, which will be followed with a closely watched rate statement.
Wednesday, October 20
In the U.S., the Federal Reserve is to release its Beige Book, a summary of the data the bank examines before setting the benchmark interest rate. The U.S. is also set to produce data on crude oil inventories. The report on crude oil inventories can be a big market mover for the loonie, as Canada is the largest foreign supplier of crude oil to the U.S.
Meanwhile, Canada is to produce key data on wholesale sales. Later in the day, the Bank of Canada will publish its closely watched monetary policy report at a press conference. The report provides a valuable insight for traders into the bank's view of economic conditions and inflation.
Thursday, October 21
The U.S. is to release key weekly data on initial jobless claims, while the Federal Reserve Bank of Philadelphia is due to release a report on the city’s manufacturing sector. The country is also due to publish an index of leading economic indicators, designed to predict the future direction of the economy.
Also Thursday, the President of the Federal Reserve Bank of St Louis, James Bullard is to speak at a public engagement. His comments will be closely watched for any clues to the future direction of monetary policy.
Elsewhere, Canada is to publish an index of leading economic indicators, designed to predict the future direction of the economy.
Friday, October 22
The President of the Federal Reserve Bank of Kansas, Thomas Hoenig is to speak at a public engagement.
Meanwhile, Canada is to end the week by releasing key data on consumer price inflation, a leading indicator of economic growth, as well data on retail sales, a leading indicator of overall consumer spending.