Investing.com - The Canadian dollar notched up modest gains against the broadly stronger U.S. dollar on Friday, boosted by small gains in oil prices and an unexpectedly strong domestic jobs report.
USD/CAD ended at 1.2564, 0.11% lower for the day.
The Canadian dollar moved higher after Statistics Canada reported that the economy added 28,700 jobs in March. Economists had expected the employment level to remain unchanged.
The unemployment rate was steady at 6.8%, in line with the consensus forecast.
The loonie was also boosted as oil prices rose on easing concerns that a nuclear deal with Iran would result in a ramp-up of Iranian crude exports into an already amply supplied market.
The loonie’s gains were held in check as demand for the greenback continued to be underpinned by expectations for higher interest rates, as investors regained confidence that the U.S. economy would continue to recover after recent economic reports pointed to a slowdown at the start of the year.
The greenback received a boost earlier in the week after comments by the presidents of the New York and Richmond Federal Reserve banks made the case for the Fed to begin policy tightening as early as the summer.
Some investors had pushed back the timing of a rate hike until late 2015 after a surprisingly weak U.S. employment report for March.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.38% to 99.63 late Friday. The index gained 2.89% for the week.
In the week ahead, U.S. data on retail sales, inflation and consumer sentiment will be closely watched for further indications on the strength of the recovery. Wednesday’s monetary policy announcement by the Bank of Canada 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 Monday as there are no relevant events.
Tuesday, April 14
The U.S. is to release data on retail sales and producer prices.
Wednesday, April 15
Canada is to release data on manufacturing sales.
The U.S. is to release reports on industrial production and manufacturing activity in New York state.
Later Wednesday, the Bank of Canada is to announce its latest monetary policy decision and hold a press conference.
Thursday, April 16
The U.S. is to release a string of reports, including jobless claims, building permits, housing starts and manufacturing activity in the Philadelphia region.
Friday, April 17
Canada is to publish reports on consumer prices and retail sales.
The U.S. is to round up the week with data on consumer prices and consumer sentiment.