Investing.com - The Canadian dollar surged to a 32-month high against its U.S. counterpart on Friday, before paring gains, after surprisingly robust domestic jobs data and a mixed U.S. employment report.
USD/CAD hit 0.9831 on Friday, the pair’s lowest since May 2008; the pair subsequently consolidated at 0.9869 by close of trade, tumbling 1.45% over the week.
The pair is likely to find support at 0.9831, Friday’s low and a 32-month low and resistance at 0.9939, Friday’s high.
Statistics Canada said that the Canadian economy added 69,200 new jobs in January, more than four times what the market was expecting.
The report said the jobless rate rose to 7.8% from 7.6% in January, as out-of-work Canadians began looking for work, in a sign of confidence in job prospects.
Meanwhile, the U.S. Department of Labor said that 36,000 jobs were added in January, far less than the 150,000 forecast and the smallest gain in four months. However, the U.S. unemployment rate unexpectedly fell from 9.4% to 9%, the lowest level in two years.
The U.S. dollar weakened immediately following the report, but trimmed losses after analysts attributed much of the jobs weakness to the heavy snowfall that blanketed much of the U.S. in January.
The loonie was also lifted by higher crude oil prices. On Monday, crude oil reached USD92.84, the highest price since October 2008, as civil unrest in Egypt fuelled concerns that supplies through the Suez Canal could be disrupted. Crude oil is Canada’s largest export.
Also Monday, official data showed that Canada’s gross domestic product grew at a 3% annual rate in November on increased oil production, wholesaling and retailing, down from a 3.4% pace in October.
Next week, the U.S. is to publish key weekly data on initial jobless claims while the chairman of the U.S. Federal Reserve is to speak. Meanwhile, Canada is to publish key data on its housing sector.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, February 7
The U.S. is to release official data on consumer credit, which is closely correlated with consumer spending and confidence.
Later in the day, Canada is to publish official data on the number of new building permits issued, an important gauge of future construction activity.
Tuesday, February 8
Canada is to publish government data on housing starts, a leading indicator of economic health, while the U.S. is to publish the results of a survey on economic optimism.
Wednesday, February 9
In the U.S., the head of the Federal Reserve Ben Bernanke is to testify before the Budget Committee in Washington. His comments will be scrutinized for clues to the future direction of monetary policy.
The U.S. is also to publish official data on crude oil inventories. This data can be a big market mover for the loonie due to the large volume of Canadian crude oil exports.
Thursday, February 10
The U.S. is to release its key weekly report on initial jobless claims, a leading indicator of overall economic health. The country is also to publish official data on its federal budget balance as well as a report on wholesale inventories and natural gas storage.
In addition, Canada is to publish official data on new home prices, a leading indicator of the housing industry’s health.
Friday, February 11
Both the U.S. and Canada are to release official data on their trade balances, the difference in value between imported and exported goods and services. Also Friday, the University of Michigan is to produce preliminary data on consumer sentiment and inflation expectations.
USD/CAD hit 0.9831 on Friday, the pair’s lowest since May 2008; the pair subsequently consolidated at 0.9869 by close of trade, tumbling 1.45% over the week.
The pair is likely to find support at 0.9831, Friday’s low and a 32-month low and resistance at 0.9939, Friday’s high.
Statistics Canada said that the Canadian economy added 69,200 new jobs in January, more than four times what the market was expecting.
The report said the jobless rate rose to 7.8% from 7.6% in January, as out-of-work Canadians began looking for work, in a sign of confidence in job prospects.
Meanwhile, the U.S. Department of Labor said that 36,000 jobs were added in January, far less than the 150,000 forecast and the smallest gain in four months. However, the U.S. unemployment rate unexpectedly fell from 9.4% to 9%, the lowest level in two years.
The U.S. dollar weakened immediately following the report, but trimmed losses after analysts attributed much of the jobs weakness to the heavy snowfall that blanketed much of the U.S. in January.
The loonie was also lifted by higher crude oil prices. On Monday, crude oil reached USD92.84, the highest price since October 2008, as civil unrest in Egypt fuelled concerns that supplies through the Suez Canal could be disrupted. Crude oil is Canada’s largest export.
Also Monday, official data showed that Canada’s gross domestic product grew at a 3% annual rate in November on increased oil production, wholesaling and retailing, down from a 3.4% pace in October.
Next week, the U.S. is to publish key weekly data on initial jobless claims while the chairman of the U.S. Federal Reserve is to speak. Meanwhile, Canada is to publish key data on its housing sector.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, February 7
The U.S. is to release official data on consumer credit, which is closely correlated with consumer spending and confidence.
Later in the day, Canada is to publish official data on the number of new building permits issued, an important gauge of future construction activity.
Tuesday, February 8
Canada is to publish government data on housing starts, a leading indicator of economic health, while the U.S. is to publish the results of a survey on economic optimism.
Wednesday, February 9
In the U.S., the head of the Federal Reserve Ben Bernanke is to testify before the Budget Committee in Washington. His comments will be scrutinized for clues to the future direction of monetary policy.
The U.S. is also to publish official data on crude oil inventories. This data can be a big market mover for the loonie due to the large volume of Canadian crude oil exports.
Thursday, February 10
The U.S. is to release its key weekly report on initial jobless claims, a leading indicator of overall economic health. The country is also to publish official data on its federal budget balance as well as a report on wholesale inventories and natural gas storage.
In addition, Canada is to publish official data on new home prices, a leading indicator of the housing industry’s health.
Friday, February 11
Both the U.S. and Canada are to release official data on their trade balances, the difference in value between imported and exported goods and services. Also Friday, the University of Michigan is to produce preliminary data on consumer sentiment and inflation expectations.