Investing.com - The Canadian dollar rose to five-week highs against the U.S. dollar on Friday, as a stronger-than-forecast domestic jobs report for March bolstered demand for the loonie.
USD/CAD fell 0.51% to settle at 1.0980, after falling to a session low of 1.0955 following the release of the data. For the week, the pair ended down 0.67%.
The pair was likely to find support at 1.0930 and resistance at 1.1040, the session high.
Statistics Canada reported that the economy added 42,900 jobs last month, well above the forecast jobs growth of 21,500. The increase came after the economy shed 7,000 jobs in February.
Canada’s unemployment rate declined to 6.9%, the first drop this year, from 7.0% in February. Analysts had expected the jobless rate to remain unchanged.
At the same time, a report showed that the U.S. economy added slightly fewer than expected jobs last month.
The U.S. economy added 192,000 jobs in March, the Labor Department said, below expectations for jobs growth of 200,000. February’s figure was revised up to 197,000 from a previously reported 175,000.
The U.S. unemployment rate remained unchanged at 6.7%, compared to expectations for a tick down to 6.6%.
The data disappointed some market expectations for a more robust reading but indicated that the Federal Reserve is likely to stick to the current pace of reductions to its asset purchase program.
In the week ahead, markets will be focusing on Wednesday’s minutes of the Fed’s most recent policy setting meeting. Data from Canada’s housing sector will also be closely watched. Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, April 7
The Bank of Canada is to publish its quarterly business outlook survey.
Tuesday, April 8
Canada is to produce data on building permits.
Wednesday, April 9
The Federal Reserve is to publish what will be the closely watched minutes of its latest policy meeting.
Thursday, April 10
Canada is to publish data on new house price inflation.
In the U.S., the Labor Department is to release its weekly report on initial jobless claims.
Friday, April 11
The U.S. is to round up the week with data on producer price inflation and the preliminary report on the University of Michigan’s consumer sentiment index.