Forex – USD/CAD weekly outlook: October 20 – 24

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U.S. dollar posts modest gains against Canadian dollar after U.S. sentiment dataU.S. dollar posts modest gains against Canadian dollar after U.S. sentiment data

Investing.com – The U.S. dollar posted modest gains against the Canadian dollar on Friday after data showed that U.S. consumer sentiment improved unexpectedly this month, while Canadian consumer prices were in line with the central bank’s target.

USD/CAD was up 0.17% to 1.1274 in late trade, not far from session highs of 1.1284.

The pair is likely to find support at around the 1.12 level and resistance at about 1.1312.

The greenback was boosted after a report showed that the University of Michigan’s consumer sentiment index unexpectedly rose to 86.4 in October, the most since July 2007.

Another report showed that U.S. housing starts rose more than expected in September, bolstering the outlook for the sector.

The data reinforced expectations that the Federal Reserve will raise interest rates in the second half of 2015.

The Canadian dollar had a subdued reaction after official data showed that the country’s consumer price index rose 2.0% year-over-year in September after rising 2.1% in August.

The data indicated that the Bank of Canada will stick to its neutral stance on interest rates at its upcoming policy meeting on Wednesday.

The US Dollar Index, which tracks the performance of the greenback against a basket of six major currencies, was up 0.33% to 85.31 late Friday, but still ended the week lower, its second consecutive weekly decline.

The greenback rose to five year peaks against its Canadian cousin on Wednesday as fears that slower global growth would act as a drag on the U.S. economy fuelled a broad-based selloff in riskier assets.

In the coming week, Investors will be looking ahead to Wednesday’s rate statement by the BoC, with the bank expected to leave rates on hold at 1.0%. Canada is also to release data on retail sales.

The U.S. is to release data on consumer inflation, as well as reports on both existing and new home sales.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.

Monday, October 20

Canada is to release data on wholesale sales.

Tuesday, October 21

The U.S. is to release private sector data on existing home sales.

Wednesday, October 22

Canada is to release data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity.

The U.S. is to produce data on consumer prices.

Later in the day, the BoC is to announce its overnight rate and publish its rate statement. The announcement is to be followed by a regularly scheduled press conference.

Thursday, October 23

The U.S. is to publish its weekly report on initial jobless claims.

Friday, October 24

The U.S. is to round up the week with a report on new home sales.



Source By Breaking News Website | BreakingNews.WS