Investing.com - The Canadian dollar was little changed against the U.S. dollar on Friday as investors focused on the yen after the Group of 20 nations indicated that they approved efforts by Japan to spur growth through its aggressive monetary easing policies.
USD/CAD hit 1.0270, the session high before settling at 1.0268, 0.09% higher for the day and up 0.35% for the week.
The pair is likely to find support at 1.0231, Friday’s low and resistance at 1.0292, Wednesday’s high and a two-month high.
The dollar rallied 1.4% against the yen on Friday after the G-20 said Japan's recent policy actions are aimed at beating deflation and not at competitively weakening the yen.
The Canadian dollar showed little reaction after official data showed that Canadian consumer price inflation rose 0.2% in February, in line with expectations.
The Canadian dollar fell to two-month lows against the greenback on Wednesday after the Bank of Canada cut its outlook for growth following its latest policy meeting.
The BoC trimmed its forecast for growth in 2013 to 1.5% from 2.0% in its January monetary policy report and cut its 2014 forecast to 2.7% from 2.8%. The bank said the economy should reach full capacity in mid-2015, later than anticipated in the January report.
The BoC left interest rates on hold at 1.0% in a widely expected decision and reiterated that existing monetary stimulus is likely to remain appropriate for a period of time, after which some modest withdrawal will likely be required.
On Tuesday, the International Monetary Fund revised down its forecast for Canadian economic growth to 1.5% this year from 1.8% in January and 2.4% in 2014.
The IMF also urged the BoC to hold off hiking interest rates until the economy is stronger, in its report on the world economic outlook.
In the week ahead, investors will be awaiting Friday’s U.S. data on first quarter growth amid lingering concerns that the U.S. economic recovery is losing momentum. Markets will also be closely watching Tuesday’s data on Canadian retail sales.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, April 22
The U.S. is to release private sector data on existing home sales, a leading indicator of demand in the housing market.
Tuesday, April 23
Canada is to publish official data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity.
Meanwhile, BoC Governor Mark Carney is to speak; his comments will be closely watched for indications on the future possible direction of monetary policy.
The U.S. is to produce official data on new home sales as well as preliminary data on manufacturing activity.
Wednesday, April 24
The U.S. is to release government data on durable goods orders, a leading indicator of production, as well as data on crude oil inventories.
Later Wednesday, BoC Governor Mark Carney is to speak.
Thursday, April 25
The U.S. is to produce the weekly government report on initial jobless claims.
Friday, April 26
The U.S. is to round up the week with preliminary data on first quarter growth, the broadest indicator of economic activity and the leading measure of the economy’s health.
The U.S. is also to release revised data from the University of Michigan on consumer sentiment and inflation expectations.
USD/CAD hit 1.0270, the session high before settling at 1.0268, 0.09% higher for the day and up 0.35% for the week.
The pair is likely to find support at 1.0231, Friday’s low and resistance at 1.0292, Wednesday’s high and a two-month high.
The dollar rallied 1.4% against the yen on Friday after the G-20 said Japan's recent policy actions are aimed at beating deflation and not at competitively weakening the yen.
The Canadian dollar showed little reaction after official data showed that Canadian consumer price inflation rose 0.2% in February, in line with expectations.
The Canadian dollar fell to two-month lows against the greenback on Wednesday after the Bank of Canada cut its outlook for growth following its latest policy meeting.
The BoC trimmed its forecast for growth in 2013 to 1.5% from 2.0% in its January monetary policy report and cut its 2014 forecast to 2.7% from 2.8%. The bank said the economy should reach full capacity in mid-2015, later than anticipated in the January report.
The BoC left interest rates on hold at 1.0% in a widely expected decision and reiterated that existing monetary stimulus is likely to remain appropriate for a period of time, after which some modest withdrawal will likely be required.
On Tuesday, the International Monetary Fund revised down its forecast for Canadian economic growth to 1.5% this year from 1.8% in January and 2.4% in 2014.
The IMF also urged the BoC to hold off hiking interest rates until the economy is stronger, in its report on the world economic outlook.
In the week ahead, investors will be awaiting Friday’s U.S. data on first quarter growth amid lingering concerns that the U.S. economic recovery is losing momentum. Markets will also be closely watching Tuesday’s data on Canadian retail sales.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, April 22
The U.S. is to release private sector data on existing home sales, a leading indicator of demand in the housing market.
Tuesday, April 23
Canada is to publish official data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity.
Meanwhile, BoC Governor Mark Carney is to speak; his comments will be closely watched for indications on the future possible direction of monetary policy.
The U.S. is to produce official data on new home sales as well as preliminary data on manufacturing activity.
Wednesday, April 24
The U.S. is to release government data on durable goods orders, a leading indicator of production, as well as data on crude oil inventories.
Later Wednesday, BoC Governor Mark Carney is to speak.
Thursday, April 25
The U.S. is to produce the weekly government report on initial jobless claims.
Friday, April 26
The U.S. is to round up the week with preliminary data on first quarter growth, the broadest indicator of economic activity and the leading measure of the economy’s health.
The U.S. is also to release revised data from the University of Michigan on consumer sentiment and inflation expectations.