Investing.com – The Canadian dollar rallied against its American counterpart late last week, rising from an 8-month low on the back of rising commodity prices.
USD/CAD dropped from Tuesday’s high of 1.0854, the 8-month high, to hit 1.0543 at the close of trade on Friday, shedding 0.42% on a weekly basis.
The pair is likely to find resistance at 1.0854 and support at 1.0245, the low of May 18.
The loonie’s gains came as crude oil prices rallied late in the week climbing to more than USD 73 a barrel. Increases in oil often lift the loonie, due to Canada’s sizable energy sector.
Next week, Canada’s central bank is due to make a key interest rate decision. Reports are also due to be published in Canada on the country’s gross domestic product, employment data, building permits, manufacturing sector and business confidence.
In the United States, meanwhile, important data will be released on U.S. nonfarm unemployment and initial jobless claims, as well as on the country's manufacturing sector and housing market. Reports will also be published on U.S. hourly earnings, construction spending, vehicle sales, factory orders and crude oil inventories. The Chairman of the Federal Reserve, Ben Bernanke, is also due to speak at a public engagement.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect USD/CAD.
Monday, May 31
Canada will publish monthly GDP data, a key indicator of economic health. Canada will also publish the raw materials price index and the industrial product price index, both important indicators of manufacturing costs.
Banks in the U.S. will be closed for the Labor Day holiday.
Tuesday, June 1
The Bank of Canada will announce a decision on its benchmark interest rate.
The U.S. will publish a report on spending in the construction sector. An industry group, the Institute for Supply Management, will also release an important report on the U.S. manufacturing sector.
Wednesday, June 2
An industry group in the U.S. will release a report on pending home sales, a leading indicator of economic health. The report, which excludes new construction, measures the change in the number of homes under contract to be sold but still awaiting the closing transaction.
Thursday, June 3
The U.S. Department of Labor will release data on labor efficiency when producing goods, excluding the farming industry. The data processing firm ADP will publish a closely watched report on U.S. nonfarm employment change.
Later in the day, the U.S. will release key data on initial jobless claims, an important indicator of overall economic health. The U.S. will also publish a report on the cost of labor, again excluding the farming industry. Later in the day, Fed Chair Ben Bernanke is scheduled to speak at an event in Detroit.
Friday, June 4
The Richard Ivey School of Business will publish the results of a survey of purchasing managers in Canada’s manufacturing sector. Canada will also publish employment data and a report on building permits, a key indicator for the condition of the housing market.
The U.S. will publish key employment data in a report on nonfarm payrolls, a leading indicator of consumer spending and overall economic health. The country will also announce its unemployment rate.
USD/CAD dropped from Tuesday’s high of 1.0854, the 8-month high, to hit 1.0543 at the close of trade on Friday, shedding 0.42% on a weekly basis.
The pair is likely to find resistance at 1.0854 and support at 1.0245, the low of May 18.
The loonie’s gains came as crude oil prices rallied late in the week climbing to more than USD 73 a barrel. Increases in oil often lift the loonie, due to Canada’s sizable energy sector.
Next week, Canada’s central bank is due to make a key interest rate decision. Reports are also due to be published in Canada on the country’s gross domestic product, employment data, building permits, manufacturing sector and business confidence.
In the United States, meanwhile, important data will be released on U.S. nonfarm unemployment and initial jobless claims, as well as on the country's manufacturing sector and housing market. Reports will also be published on U.S. hourly earnings, construction spending, vehicle sales, factory orders and crude oil inventories. The Chairman of the Federal Reserve, Ben Bernanke, is also due to speak at a public engagement.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect USD/CAD.
Monday, May 31
Canada will publish monthly GDP data, a key indicator of economic health. Canada will also publish the raw materials price index and the industrial product price index, both important indicators of manufacturing costs.
Banks in the U.S. will be closed for the Labor Day holiday.
Tuesday, June 1
The Bank of Canada will announce a decision on its benchmark interest rate.
The U.S. will publish a report on spending in the construction sector. An industry group, the Institute for Supply Management, will also release an important report on the U.S. manufacturing sector.
Wednesday, June 2
An industry group in the U.S. will release a report on pending home sales, a leading indicator of economic health. The report, which excludes new construction, measures the change in the number of homes under contract to be sold but still awaiting the closing transaction.
Thursday, June 3
The U.S. Department of Labor will release data on labor efficiency when producing goods, excluding the farming industry. The data processing firm ADP will publish a closely watched report on U.S. nonfarm employment change.
Later in the day, the U.S. will release key data on initial jobless claims, an important indicator of overall economic health. The U.S. will also publish a report on the cost of labor, again excluding the farming industry. Later in the day, Fed Chair Ben Bernanke is scheduled to speak at an event in Detroit.
Friday, June 4
The Richard Ivey School of Business will publish the results of a survey of purchasing managers in Canada’s manufacturing sector. Canada will also publish employment data and a report on building permits, a key indicator for the condition of the housing market.
The U.S. will publish key employment data in a report on nonfarm payrolls, a leading indicator of consumer spending and overall economic health. The country will also announce its unemployment rate.