Investing.com - The U.S. dollar ended the day lower against the Canadian dollar on Friday after stronger-than-forecast U.S. nonfarm payrolls data for April bolstered risk appetite.
USD/CAD hit session lows of 1.0076 before settling at 1.0083, down 0.22% for the day and ending the week 0.37% lower.
The pair is likely to find support at 1.0050, the low of May 1 and resistance at 1.0130, Friday’s high.
The U.S. Department of Labor said the economy added 165,000 jobs in April, above expectations for an increase of 145,000, while job increases for the previous month were revised up to 138,000.
The U.S. unemployment rate unexpectedly fell to a four-month low of 7.5% from 7.6% in March.
The robust data eased investor concerns over a slowdown in the U.S. economic recovery.
The Canadian dollar shrugged off a report by the Institute of Supply Management showing that the U.S. service sector expanded at the slowest pace in nine months in April.
The ISM non-manufacturing purchasing managers’ index fell to 53.1 from 54.4 in March, below expectations for a reading of 54.0.
A separate report showed that U.S. factory orders fell 4.0% in March, more than expectations for a 2.6% decline.
On Wednesday, the Federal Reserve recommitted to its USD85 billion a month asset purchase program and indicated that it could increase or decrease the monthly amount, depending on the outlook for inflation and employment.
The greenback fell to two-and-a-half month lows against the Canadian dollar on Wednesday after reports showed that the U.S. private sector added fewer-than-expected jobs in April and growth in the U.S. manufacturing sector slowed.
In the week ahead, investors will be watching Canadian housing sector and employment data as well as a speech by Fed Chairman Ben Bernanke.
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 and Wednesday as there are no relevant events on these days.
Monday, May 6
Canada is to release official data on building permits as well as a report on the Ivey PMI, a leading economic indicator.
Thursday, May 9
Canada is to release official data on new house price inflation, a leading indicator of demand in the housing sector.
The U.S. is to publish the weekly government report on initial jobless claims.
Friday, May 10
Canada is to release government data on the change in the number of people employed and the unemployment rate, a leading economic indicator.
In the U.S., Fed Chairman Ben Bernanke is to speak; his comments will be closely watched. The U.S. is also to release official data on the federal budget balance.
Meanwhile, finance ministers and central bank heads from the Group of Seven nations are to hold the first day of a two day summit meeting.
USD/CAD hit session lows of 1.0076 before settling at 1.0083, down 0.22% for the day and ending the week 0.37% lower.
The pair is likely to find support at 1.0050, the low of May 1 and resistance at 1.0130, Friday’s high.
The U.S. Department of Labor said the economy added 165,000 jobs in April, above expectations for an increase of 145,000, while job increases for the previous month were revised up to 138,000.
The U.S. unemployment rate unexpectedly fell to a four-month low of 7.5% from 7.6% in March.
The robust data eased investor concerns over a slowdown in the U.S. economic recovery.
The Canadian dollar shrugged off a report by the Institute of Supply Management showing that the U.S. service sector expanded at the slowest pace in nine months in April.
The ISM non-manufacturing purchasing managers’ index fell to 53.1 from 54.4 in March, below expectations for a reading of 54.0.
A separate report showed that U.S. factory orders fell 4.0% in March, more than expectations for a 2.6% decline.
On Wednesday, the Federal Reserve recommitted to its USD85 billion a month asset purchase program and indicated that it could increase or decrease the monthly amount, depending on the outlook for inflation and employment.
The greenback fell to two-and-a-half month lows against the Canadian dollar on Wednesday after reports showed that the U.S. private sector added fewer-than-expected jobs in April and growth in the U.S. manufacturing sector slowed.
In the week ahead, investors will be watching Canadian housing sector and employment data as well as a speech by Fed Chairman Ben Bernanke.
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 and Wednesday as there are no relevant events on these days.
Monday, May 6
Canada is to release official data on building permits as well as a report on the Ivey PMI, a leading economic indicator.
Thursday, May 9
Canada is to release official data on new house price inflation, a leading indicator of demand in the housing sector.
The U.S. is to publish the weekly government report on initial jobless claims.
Friday, May 10
Canada is to release government data on the change in the number of people employed and the unemployment rate, a leading economic indicator.
In the U.S., Fed Chairman Ben Bernanke is to speak; his comments will be closely watched. The U.S. is also to release official data on the federal budget balance.
Meanwhile, finance ministers and central bank heads from the Group of Seven nations are to hold the first day of a two day summit meeting.