Investing.com - The Canadian dollar was little changed against the U.S. dollar on Friday as investors remained on the sidelines amid concerns over a U.S. government shutdown.
USD/CAD hit session highs of 1.0332, before paring back gains to settle at 1.0306, 0.04% lower for the day. For the week, the pair was 0.19% higher.
The pair is likely to find support at 1.0267, the low of September 24 and resistance at 1.0339, Thursday’s high and an almost two-week high.
Investor sentiment was hit by concerns that political wrangling in Washington could lead to a government shutdown and create a drag on fourth quarter economic growth.
Congress must pass a short-term budget by midnight on Monday in order to avoid a government shutdown.
Republican opposition to the funding of the Affordable Care Act has created a standoff with the White House and the Democratic-controlled Senate, which have both said they will not support any budget bill that defunds or amends Obamacare.
Later this month, Congress will also have to extend the U.S. debt ceiling which the U.S. Treasury Department has estimated will be reached by October 17.
Sentiment on the greenback remained negative following the Federal Reserve’s unexpected decision earlier this month to maintain its USD85 billion-a-month asset purchase program.
Data on Friday showing that U.S. consumer sentiment fell to its lowest level in five months underlined concerns over the outlook for the economic recovery.
The final reading of the University of Michigan’s consumer sentiment index fell to 77.5 in September from a reading of 82.1 in August, the lowest level since April.
In the week ahead, investors will be focusing on Friday’s U.S. nonfarm payrolls report, for indications on whether the economic recovery is sufficiently strong for the Fed to start rolling back its stimulus program.
Markets will also be watching developments in U.S. budget negotiations, while Canadian growth data will also be in focus.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, September 30
Canada is to publish its monthly report on gross domestic product, the broadest indicator of economic activity and the leading measure of the economy’s health.
The U.S. is to release a report on manufacturing activity in Chicago.
Tuesday, October 1
In the U.S., the Institute of Supply Management is to produce a report on manufacturing activity, a leading economic indicator.
Wednesday, October 2
The U.S. is to release the ADP report on nonfarm payrolls, which leads the closely watched government report by two days.
Thursday, October 3
The U.S. is to release the weekly government report on initial jobless claims along with data on factory orders. Meanwhile, the ISM is to produce a report on non-manufacturing activity, a leading economic indicator.
Friday, October 4
Canada is to publish its Ivey purchasing managers’ index.
The U.S. is to round up the week with the closely watched government report on nonfarm payrolls, the unemployment rate and average hourly earnings.
USD/CAD hit session highs of 1.0332, before paring back gains to settle at 1.0306, 0.04% lower for the day. For the week, the pair was 0.19% higher.
The pair is likely to find support at 1.0267, the low of September 24 and resistance at 1.0339, Thursday’s high and an almost two-week high.
Investor sentiment was hit by concerns that political wrangling in Washington could lead to a government shutdown and create a drag on fourth quarter economic growth.
Congress must pass a short-term budget by midnight on Monday in order to avoid a government shutdown.
Republican opposition to the funding of the Affordable Care Act has created a standoff with the White House and the Democratic-controlled Senate, which have both said they will not support any budget bill that defunds or amends Obamacare.
Later this month, Congress will also have to extend the U.S. debt ceiling which the U.S. Treasury Department has estimated will be reached by October 17.
Sentiment on the greenback remained negative following the Federal Reserve’s unexpected decision earlier this month to maintain its USD85 billion-a-month asset purchase program.
Data on Friday showing that U.S. consumer sentiment fell to its lowest level in five months underlined concerns over the outlook for the economic recovery.
The final reading of the University of Michigan’s consumer sentiment index fell to 77.5 in September from a reading of 82.1 in August, the lowest level since April.
In the week ahead, investors will be focusing on Friday’s U.S. nonfarm payrolls report, for indications on whether the economic recovery is sufficiently strong for the Fed to start rolling back its stimulus program.
Markets will also be watching developments in U.S. budget negotiations, while Canadian growth data will also be in focus.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, September 30
Canada is to publish its monthly report on gross domestic product, the broadest indicator of economic activity and the leading measure of the economy’s health.
The U.S. is to release a report on manufacturing activity in Chicago.
Tuesday, October 1
In the U.S., the Institute of Supply Management is to produce a report on manufacturing activity, a leading economic indicator.
Wednesday, October 2
The U.S. is to release the ADP report on nonfarm payrolls, which leads the closely watched government report by two days.
Thursday, October 3
The U.S. is to release the weekly government report on initial jobless claims along with data on factory orders. Meanwhile, the ISM is to produce a report on non-manufacturing activity, a leading economic indicator.
Friday, October 4
Canada is to publish its Ivey purchasing managers’ index.
The U.S. is to round up the week with the closely watched government report on nonfarm payrolls, the unemployment rate and average hourly earnings.