Investing.com - " The U.S. dollar was steady at three-week lows against the Canadian dollar on Friday amid worries that the impact of the U.S. debt crisis would see the Federal Reserve maintain the pace of its stimulus program for longer than had been expected.
USD/CAD ended Friday's session at 1.0291, dipping 0.01% for the day, after hitting lows of 1.0276. The pair ended the week with losses of 0.58%.
The pair is likely to find support at 1.0261, the low of September 20 and resistance at 1.0331, Thursday's high.
The dollar fell against the other major currencies on Thursday after the U.S. Congress passed a bill to reopen the government and raise the debt ceiling, with just hours to spare ahead of a deadline to avert an unprecedented sovereign debt default.
The deal will fund the government until January 15 and raise the government borrowing limit until February 7. Both sides also agreed to talks over broad budget issues in an attempt to reach a longer-term deal by December 13.
Sentiment on the dollar was hit by fears that the impact of the government shutdown on the already fragile economic recovery would prompt the Fed to delay plans for tapering its asset purchase program until at least the beginning of next year.
The possibility of another debt crisis also loomed, as the temporary solution does not resolve the underlying budgetary issues dividing Republicans and Democrats.
The Canadian dollar was little changed after data released on Friday showed that the annual rate of consumer price inflation was unchanged in September.
Statistics Canada said the annual rate of consumer inflation was steady at 1.1% last month and the core consumer inflation rate was also unchanged from the previous month at 1.3%.
In the week ahead, U.S. data releases will be in focus after the shutdown delayed the release of some key economic reports. The Department of Labor is to publish the September nonfarm payrolls report on Tuesday and data on durable goods orders is to be released on Friday.
Wednesday's rate statement by the Bank of Canada will also be in focus, as investors try to gauge when the central bank may eventually raise interest rates.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, October 21
Canada is to publish a report on wholesale sales, a leading indicator of consumer spending.
The U.S. is to release private sector data on existing home sales, a leading indicator of demand in the housing sector.
Tuesday, October 22
Canada is to produce data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity.
The U.S. is to publish the September nonfarm payrolls report, which had been originally scheduled for release on October 4.
Wednesday, October 23
The BoC is to announce its benchmark interest rate and publish its rate statement, which outlines economic conditions and the factors affecting the monetary policy decision. The announcement is to be followed by a press conference.
The U.S. is to publish data on import prices, a leading contributor to inflation.
Thursday, October 24
The U.S. is to release the weekly report on initial jobless claims, as well as data on new home sales.
Friday, October 25
The U.S. is to round up the week with data on durable goods orders, a leading indicator of production, as well as revised data on consumer sentiment from the University of Michigan.
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