Investing.com – Last week saw the broadly weaker U.S. dollar tumble to an 8-week low against its Canadian counterpart amid speculation over fresh stimulus measures by the Federal Reserve for the flagging U.S. economy.
USD/CAD hit 1.0187 on Friday, the pair's lowest since August 6; the pair subsequently consolidated at 1.0193 by close of trade, shedding 0.46% over the week.
The pair is likely to find support at 1.0106, the low of August 5 and resistance at 1.0344, last Thursday's high.
On Friday, senior Federal Reserve officials indicated that the bank would almost certainly have to provide fresh stimulus to the faltering U.S. economy.
Meanwhile, Bank of Canada Governor Mark Carney said on Thursday that Canadian economic growth would remain modest in the months ahead with further interest rate hikes likely to remain on hold.
"We've got to be careful in this environment," Carney said. "There's unusual uncertainty around the U.S. and global outlook and the knock-on effects on Canada, and this environment warrants caution regarding any further withdrawal of monetary stimulus."
Next week, the U.S. is due to release the closely watched ADP report on non-farm employment change ahead of Friday's government data on non-farm payrolls. In addition, the country is to release official data on initial jobless claims, manufacturing activity and pending home sales.
Canada is to publish key data on manufacturing, employment and business outlook as well as two reports on the country's housing sector.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect USD/CAD.
Monday, October 4
The U.S. is to start the week by releasing official data on pending home sales and factory orders, while Federal Reserve Chairman Ben Bernanke is due to deliver a speech at a public engagement. His comments will be closely scrutinized for any clues to the future direction of monetary policy.
Tuesday, October 5
The U.S. is due to release official data on services sector growth, a leading indicator of economic health.
Wednesday, October 6
The U.S. is to release a report on ADP non-farm employment change. This data is viewed as an accurate prediction of the governments report on non-farm payrolls released two days later.
Also Wednesday, the U.S. is to publish data on crude oil inventories. This data 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 due to publish its Ivey PMI, a leading indicator of manufacturing growth.
Thursday, October 7
The U.S. is to release key weekly data on initial jobless claims as well as official data on consumer credit and natural gas inventories.
Meanwhile, Canada is due to release official data on building permits, a leading indicator of health in the housing sector.
Friday, October 8
The U.S. is to end the week by producing data on non-farm employment change and a report on the country's unemployment rate, both leading indicators of overall economic health.
Meanwhile, Canada is also set to release key data on employment change and the country's unemployment rate, as well as data on business outlook and housing starts.
USD/CAD hit 1.0187 on Friday, the pair's lowest since August 6; the pair subsequently consolidated at 1.0193 by close of trade, shedding 0.46% over the week.
The pair is likely to find support at 1.0106, the low of August 5 and resistance at 1.0344, last Thursday's high.
On Friday, senior Federal Reserve officials indicated that the bank would almost certainly have to provide fresh stimulus to the faltering U.S. economy.
Meanwhile, Bank of Canada Governor Mark Carney said on Thursday that Canadian economic growth would remain modest in the months ahead with further interest rate hikes likely to remain on hold.
"We've got to be careful in this environment," Carney said. "There's unusual uncertainty around the U.S. and global outlook and the knock-on effects on Canada, and this environment warrants caution regarding any further withdrawal of monetary stimulus."
Next week, the U.S. is due to release the closely watched ADP report on non-farm employment change ahead of Friday's government data on non-farm payrolls. In addition, the country is to release official data on initial jobless claims, manufacturing activity and pending home sales.
Canada is to publish key data on manufacturing, employment and business outlook as well as two reports on the country's housing sector.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect USD/CAD.
Monday, October 4
The U.S. is to start the week by releasing official data on pending home sales and factory orders, while Federal Reserve Chairman Ben Bernanke is due to deliver a speech at a public engagement. His comments will be closely scrutinized for any clues to the future direction of monetary policy.
Tuesday, October 5
The U.S. is due to release official data on services sector growth, a leading indicator of economic health.
Wednesday, October 6
The U.S. is to release a report on ADP non-farm employment change. This data is viewed as an accurate prediction of the governments report on non-farm payrolls released two days later.
Also Wednesday, the U.S. is to publish data on crude oil inventories. This data 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 due to publish its Ivey PMI, a leading indicator of manufacturing growth.
Thursday, October 7
The U.S. is to release key weekly data on initial jobless claims as well as official data on consumer credit and natural gas inventories.
Meanwhile, Canada is due to release official data on building permits, a leading indicator of health in the housing sector.
Friday, October 8
The U.S. is to end the week by producing data on non-farm employment change and a report on the country's unemployment rate, both leading indicators of overall economic health.
Meanwhile, Canada is also set to release key data on employment change and the country's unemployment rate, as well as data on business outlook and housing starts.