Investing.com – Last week saw the Canadian dollar advance against its U.S. counterpart after the central bank hiked interest rates, before paring gains on Friday after the central bank sounded a note of caution on future rate increases.
USD/CAD hit 1.0508 on Wednesday, the pair's highest since September 3; the pair subsequently consolidated at 1.0364 by close of trade on Friday, gaining 0.26% over the week.
The pair is likely to find support at 1.0247, the low of August 19 and resistance at 1.0508, the high of September 8.
The loonies gains came after the Bank of Canada increased its benchmark interest rate from 0.75% to 1.0% on Wednesday, the third such increase since June.
But the loonie pared gains on Friday after central bank governor Mark Carney said that policy makers will be “careful” in considering the implications of slower U.S. growth when deciding whether to raise rates further in the future.
In the week ahead, the U.S. is to release data on retail sales, industrial production and consumer prices. The country is also to release key data on initial jobless claims.
Meanwhile, Canada is to release data on labor productivity and manufacturing sales. Also next week, the Governor of the Bank of Canada is due to deliver a speech in Berlin.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect USD/CAD.
Monday, September 13
The U.S. will begin the week by releasing its federal budget balance, the difference in value between the federal government's incomes and spending during the previous month.
Tuesday, September 14
The U.S. will release data on retail sales, a primary gauge of consumer spending, which accounts for the majority of all economic activity.
Also Tuesday, Canada will release data on labor productivity, which is closely linked to inflation. The country is also to release data on new vehicle sales.
Later in the day, the Governor of the Bank of Canada is due to deliver speech on financial reforms in Berlin. His comments will be closely scrutinized for any clues to the future direction of monetary policy.
Wednesday, September 15
In the U.S., the Federal Reserve Bank of New York is due to release key data on manufacturing sector activity, while the Federal Reserve is to produce information on its capacity utilization rate, the percentage of available resources being utilized by manufacturers, mines, and utilities.
The U.S. is also due to release key data on import prices, industrial production and crude oil inventories. This data can be a big market mover for the loonie, as the U.S. is a major importer of Canadian oil.
Meanwhile, Canada is to release data on manufacturing sales, a leading indicator of economic health. Later in the day, the Bank of Canada deputy governor is due to speak at a public engagement.
Thursday, September 16
The U.S. is to release key weekly data on initial jobless claims, after which the U.S. Treasury is to publish a report on TIC Long-Term purchases, which measures the difference in value between foreign long-term securities purchased by U.S. citizens and U.S. long-term securities purchased by foreigners.
Later in the day, the Federal Reserve Bank of Philadelphia is due to release key data on the manufacturing. The U.S. is also to produce data on the country's current account and producer price index, a leading indicator of consumer inflation.
Friday, September 17
The U.S. is to end the week by producing key data on its consumer price index, while the University of Michigan is to release revised data on consumer sentiment and inflation expectations.
USD/CAD hit 1.0508 on Wednesday, the pair's highest since September 3; the pair subsequently consolidated at 1.0364 by close of trade on Friday, gaining 0.26% over the week.
The pair is likely to find support at 1.0247, the low of August 19 and resistance at 1.0508, the high of September 8.
The loonies gains came after the Bank of Canada increased its benchmark interest rate from 0.75% to 1.0% on Wednesday, the third such increase since June.
But the loonie pared gains on Friday after central bank governor Mark Carney said that policy makers will be “careful” in considering the implications of slower U.S. growth when deciding whether to raise rates further in the future.
In the week ahead, the U.S. is to release data on retail sales, industrial production and consumer prices. The country is also to release key data on initial jobless claims.
Meanwhile, Canada is to release data on labor productivity and manufacturing sales. Also next week, the Governor of the Bank of Canada is due to deliver a speech in Berlin.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect USD/CAD.
Monday, September 13
The U.S. will begin the week by releasing its federal budget balance, the difference in value between the federal government's incomes and spending during the previous month.
Tuesday, September 14
The U.S. will release data on retail sales, a primary gauge of consumer spending, which accounts for the majority of all economic activity.
Also Tuesday, Canada will release data on labor productivity, which is closely linked to inflation. The country is also to release data on new vehicle sales.
Later in the day, the Governor of the Bank of Canada is due to deliver speech on financial reforms in Berlin. His comments will be closely scrutinized for any clues to the future direction of monetary policy.
Wednesday, September 15
In the U.S., the Federal Reserve Bank of New York is due to release key data on manufacturing sector activity, while the Federal Reserve is to produce information on its capacity utilization rate, the percentage of available resources being utilized by manufacturers, mines, and utilities.
The U.S. is also due to release key data on import prices, industrial production and crude oil inventories. This data can be a big market mover for the loonie, as the U.S. is a major importer of Canadian oil.
Meanwhile, Canada is to release data on manufacturing sales, a leading indicator of economic health. Later in the day, the Bank of Canada deputy governor is due to speak at a public engagement.
Thursday, September 16
The U.S. is to release key weekly data on initial jobless claims, after which the U.S. Treasury is to publish a report on TIC Long-Term purchases, which measures the difference in value between foreign long-term securities purchased by U.S. citizens and U.S. long-term securities purchased by foreigners.
Later in the day, the Federal Reserve Bank of Philadelphia is due to release key data on the manufacturing. The U.S. is also to produce data on the country's current account and producer price index, a leading indicator of consumer inflation.
Friday, September 17
The U.S. is to end the week by producing key data on its consumer price index, while the University of Michigan is to release revised data on consumer sentiment and inflation expectations.