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Forex - USD/CAD weekly outlook: November 4 - 8
Investing.com - " The U.S. dollar ended the week lower against
the Canadian dollar on Friday as the Canadian dollar steadied after
falling to two-month lows earlier in the week.
USD/CAD ended Friday's session at 1.0423, 0.21% lower for the week, after rising to 1.0496, the highest level since September 6 in Wednesday's session.
The pair is likely to find support at 1.0365, the low of October 24 and resistance at 1.0488, Thursday's high.
The Canadian dollar found support after data released on Thursday showed that the economy expanded at a faster than expected rate in August.
Statistics Canada said gross domestic product expanded 0.3% in August, above expectations for growth of 0.2%. Canada's economy grew by 0.6% in July.
Canadian GDP grew 2% on a yearly basis, beating forecasts for an increase of 1.7%, following annualized growth of 1.5% in July.
Investors remained focused on the monetary policy outlook after the Bank of Canada shifted its policy, dropping language referring to the need for future rate increases from its October rate statement.
Meanwhile, the Federal Reserve left its USD85 billion-a-month asset purchase program in place following its monthly meeting on Wednesday.
The bank gave no clear indication whether it would start scaling back stimulus at the December meeting or continue it into the start of 2014.
"The housing sector has slowed somewhat in recent months," the Fed statement said. However, Fed officials stuck to the view that the economy is expanding "at a moderate pace" and said downside risks were diminishing.
Expectations that the Fed may start to scale back stimulus measures as soon as next month received a boost on Friday following unexpectedly strong U.S. manufacturing data for October.
The Institute of Supply Management said its manufacturing purchasing managers' index rose to 56.4 in October, the highest since April 2011, from 56.2 in September. Economists had expected the index to tick down to 55.0.
On Friday the U.S. is to release the nonfarm payrolls report for October, which will help assess expectations for a possible reduction in Fed stimulus.
Data released on Wednesday showed that the U.S. private sector added fewer jobs than expected in October. Payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 130,000 in October, below expectations for an increase of 150,000.
The U.S. is also to release preliminary data on third quarter economic growth.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, November 4
The U.S. is to release data on factory orders, a leading indicator of production.
Tuesday, November 5
Canada is to release a report on the trade balance, the difference in value between imports and exports.
In the U.S., the ISM is to release a report on service sector activity.
Wednesday, November 6
Canada is to publish data on building permits and the Ivey purchasing managers' index.
Thursday, November 7
The U.S. is to publish a preliminary estimate of third quarter gross domestic product, the broadest indicator of economic activity and the leading indicator of economic growth. Meanwhile, the Labor Department is to release its weekly report on initial jobless claims.
Friday, November 8
Canada is to release data on the change in the number of people employed and the unemployment rate.
The University of Michigan is to release the preliminary reading of its consumer sentiment index. The U.S. is to round up the week with the closely watched government data on nonfarm payrolls and the unemployment rate.
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