Investing.com - The U.S. dollar ended the week lower against the Canadian dollar on Friday, after official data showed that the Canadian economy added significantly more jobs than forecast in September, while data showing that the U.S. unemployment rate unexpectedly dropped also bolstered risk appetite.
USD/CAD hit 0.9734 on Friday, the pair's lowest since September 21; the pair subsequently consolidated at 0.9783 by close of trade, 0.55% lower on the week.
The pair is likely to find support at 0.9692, the low of September 17 and resistance at 0.9855, the high of September 27.
The U.S. Department of Labor said Friday the economy added 114,000 jobs in September, pushing the unemployment rate down to 7.8% from 8.1% the previous month, the lowest level since January 2009.
The report came after upbeat U.S. data on manufacturing and services earlier in the week and fuelled hopes that the economic recovery may be gaining momentum.
On Wednesday, the Institute of Supply Management said its services purchasing managers' index rose to 55.1 in September from a reading of 53.7 in August.
Analysts had expected the index to decline to 53.2 in September.
Data produced by the ISM on Monday showed that U.S. manufacturing activity expanded in September for the first time in four months.
Statistics Canada said the economy added 52,100 jobs in September, easily beating expectations for an additional 10,000 jobs, while the unemployment rate ticked up to 7.4% from 7.3% the previous month, compared to expectations for a decline to 7.0%.
The data came one day after the senior deputy governor of the Bank of Canada indicated that the central bank was still looking at raising rates and said that the central bank would continue to monitor conditions in the labor market.
Market sentiment was boosted on Thursday after European Central Bank President Mario Draghi reiterated that the single currency is “irreversible” and said that the bank was ready to buy the debt of distressed euro zone states.
On Tuesday, Spanish Prime Minister Mariano Rajoy downplayed the possibility that Madrid would request a full-scale sovereign bailout, saying it was not certain that the country would ask for external financial assistance.
In the week ahead, market participants will be closely watching the outcome of a meeting of euro zone finance ministers on Tuesday, where a possible bailout for Spain is expected to be on the agenda.
Meanwhile, the U.S. is to publish its weekly report on initial jobless claims, as well as a closely watched report on consumer sentiment.
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 Tuesday, as there are no relevant events on this day.
Monday, October 8
Markets in the U.S. and Canada are to remain closed for the Columbus Day holiday.
Wednesday, October 10
The U.S. Federal Reserve is to publish its Beige Book, which outlines current economic conditions.
Thursday, October 11
Canada is to publish official data on its trade balance, the difference in value between imports and exports; as well as an industry report on house price inflation, a leading indicator of the health of the housing sector.
The U.S. is also to publish government data on the trade balance, in addition to official data on initial jobless claims, import prices and crude oil stockpiles.
Also Thursday, finance ministers and central bankers from the G7 group of industrialized nations are due to hold talks in Tokyo.
Friday, October 12
The U.S. is to round up the week with official data on producer price inflation, a leading indicator of consumer inflation. In addition, the University of Michigan is to release preliminary data on consumer sentiment, a leading indicator of economic health.
USD/CAD hit 0.9734 on Friday, the pair's lowest since September 21; the pair subsequently consolidated at 0.9783 by close of trade, 0.55% lower on the week.
The pair is likely to find support at 0.9692, the low of September 17 and resistance at 0.9855, the high of September 27.
The U.S. Department of Labor said Friday the economy added 114,000 jobs in September, pushing the unemployment rate down to 7.8% from 8.1% the previous month, the lowest level since January 2009.
The report came after upbeat U.S. data on manufacturing and services earlier in the week and fuelled hopes that the economic recovery may be gaining momentum.
On Wednesday, the Institute of Supply Management said its services purchasing managers' index rose to 55.1 in September from a reading of 53.7 in August.
Analysts had expected the index to decline to 53.2 in September.
Data produced by the ISM on Monday showed that U.S. manufacturing activity expanded in September for the first time in four months.
Statistics Canada said the economy added 52,100 jobs in September, easily beating expectations for an additional 10,000 jobs, while the unemployment rate ticked up to 7.4% from 7.3% the previous month, compared to expectations for a decline to 7.0%.
The data came one day after the senior deputy governor of the Bank of Canada indicated that the central bank was still looking at raising rates and said that the central bank would continue to monitor conditions in the labor market.
Market sentiment was boosted on Thursday after European Central Bank President Mario Draghi reiterated that the single currency is “irreversible” and said that the bank was ready to buy the debt of distressed euro zone states.
On Tuesday, Spanish Prime Minister Mariano Rajoy downplayed the possibility that Madrid would request a full-scale sovereign bailout, saying it was not certain that the country would ask for external financial assistance.
In the week ahead, market participants will be closely watching the outcome of a meeting of euro zone finance ministers on Tuesday, where a possible bailout for Spain is expected to be on the agenda.
Meanwhile, the U.S. is to publish its weekly report on initial jobless claims, as well as a closely watched report on consumer sentiment.
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 Tuesday, as there are no relevant events on this day.
Monday, October 8
Markets in the U.S. and Canada are to remain closed for the Columbus Day holiday.
Wednesday, October 10
The U.S. Federal Reserve is to publish its Beige Book, which outlines current economic conditions.
Thursday, October 11
Canada is to publish official data on its trade balance, the difference in value between imports and exports; as well as an industry report on house price inflation, a leading indicator of the health of the housing sector.
The U.S. is also to publish government data on the trade balance, in addition to official data on initial jobless claims, import prices and crude oil stockpiles.
Also Thursday, finance ministers and central bankers from the G7 group of industrialized nations are due to hold talks in Tokyo.
Friday, October 12
The U.S. is to round up the week with official data on producer price inflation, a leading indicator of consumer inflation. In addition, the University of Michigan is to release preliminary data on consumer sentiment, a leading indicator of economic health.