USD/CAD fell to session lows of 1.0158, the pair’s lowest since April 15, before settling at 1.0172, 0.28% lower for the day, extending the week’s losses to 0.84%.
The pair is likely to find support at 1.0132, the low of April 15 and resistance at 1.0212, Friday’s high.
The Commerce Department said U.S. gross domestic product expanded by 2.5% in the three months to March, missing expectations for growth of 3.0%.
The disappointing data added to expectations that the Federal Reserve will continue its monetary easing program, amid lingering concerns over the outlook for the U.S. economic recovery.
The Canadian dollar posted strong gains against the greenback on Thursday after stronger-than-expected data from the U.S. and the U.K. saw crude oil, Canada’s largest export, rebound.
Official data showed that the U.K. economy returned to growth in the first quarter, expanding by a larger-than-forecast 0.3%, while a separate report showed that U.S. initial jobless claims fell by 16,000 to 339,000.
In the week ahead, investors will be awaiting the outcome of Wednesday’s Federal Reserve policy meeting and Friday’s closely watched report on U.S. nonfarm payrolls, as well as Canada’s monthly GDP report.
Market participant will also be awaiting an announcement by the Bank of Canada on who is to replace outgoing Governor Mark Carney, who is leaving in June to become the new Bank of England governor.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, April 29
The U.S. is to produce official data on personal income and expenditure, as well as private sector data on pending home sales, a leading economic indicator.
Tuesday, April 30
Canada is to release official data on GDP, the broadest indicator of economic activity and the leading measure of the economy’s health.
Later Tuesday, the U.S. is to release data on consumer confidence, a report on manufacturing activity in Chicago and private sector data on house price inflation.
Wednesday, May 1
The U.S. is to release the ADP nonfarm payrolls report on private sector job creation as well as government data on crude oil stockpiles. In addition, the Institute of Supply Management is release data on U.S. manufacturing activity, a leading economic indicator.
In addition, the Federal Reserve is to announce its benchmark interest rate. The announcement is to be accompanied by the bank’s monetary policy statement, which contains valuable insights into economic conditions from the bank’s perspective.
Thursday, May 2
Canada is to publish government data on the trade balance, the difference in value between imports and exports.
The U.S. is to publish the weekly government report on initial jobless claims as well as official data on the trade balance.
Friday, May 3
The U.S. is to round up the week with government data on nonfarm payrolls and the unemployment rate as well as data on average hourly earnings and factory orders. In addition, the ISM is release data on U.S. service sector activity, a leading economic indicator.