The U.S. dollar moved higher against the Canadian dollar in holiday thinned trade on Friday, as markets in the U.S. remained closed for the Independence Day holiday.
USD/CAD ended Friday’s session at 1.0651, pulling back from the six month lows of 1.0619 hit in the previous session. For the week, the pair slipped 0.13%.
The pair is likely to find support at 1.0619 and resistance at 1.0680.
The greenback touched its 2014 lows against the loonie on Thursday after the Labor Department reported that that U.S. economy added 288,000 jobs last month, well above expectations for jobs growth of 212,000.
The previous month’s figure was revised up to a gain of 224,000 from a previously reported increase of 217,000.
The unemployment rate ticked down to 6.1% from 6.3% in May, the lowest in almost six years. The data was released a day early, ahead of the Independence Day holiday on Friday.
The upbeat data sparked speculation that the Federal Reserve could bring forward its timetable for raising interest rates.
The Canadian dollar continued to remain supported after recent stronger than expected inflation data for May fuelled expectations that the Bank of Canada could shift away from its neutral stance on interest rates. The loonie received an additional boost from rising oil prices in May, amid concerns over the ongoing insurgency in Iraq.
In the week ahead, investors will be focusing on Wednesdays’ minutes of the Federal Reserve’s June meeting, while Canada’s latest jobs report will also be in focus.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets. The guide skips Tuesday as there are no relevant events on this day.
Monday, July 7
- Canada is to publish data on building starts and the Ivey PMI.
- Canada is to publish data on housing starts.
- Later Wednesday, the Federal Reserve is to publish the minutes of its June meeting.
- The U.S. is to release the weekly government report on initial jobless claims.
- Canada is to round up the week with data on the change in the number of people employed and the unemployment rate.
