Investing.com - The U.S. dollar strengthened against the Canadian dollar on Friday after data showed that the Canadian economy added fewer-than-expected jobs in July, underlining concerns over the outlook for economic growth.
USD/CAD was up 0.45% to 1.0973 late Friday, from 1.0908 ahead of the release of the jobs report.
The pair is likely to find support at around the 1.0900 level and near-term resistance at 1.0985, Wednesday’s high and a three month peak.
Statistics Canada reported that the economy added just 200 jobs last month, falling well short of expectations for jobs growth of 20,000. The unemployment rate ticked down to 7.0% from 7.1% in June.
The report contrasted with recent economic data indicating that the economic recovery in the U.S. is deepening.
Concerns over rising geopolitical tensions continued to dominate market sentiment after the U.S. launched airstrikes in Iraq, in a bit to halt the advance of extremists in the country’s north. A breakdown in the ceasefire between Israel and Gaza also fuelled widespread risk aversion.
However, fears over hostilities between Russia and Ukraine eased on Friday after Russia’s defense ministry said it had concluded military exercises it was holding close to the border with Ukraine.
In the week ahead, investors will be continuing to monitor geopolitical risk. Markets watchers will also be looking ahead to Wednesday’s U.S. report on retail sales, as well as reports on Canada’s hosing sector.
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, August 11
Canada is to release data on housing starts, a leading indicator of demand in the housing sector.
Wednesday, August 13
The U.S. is to publish data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity.
Thursday, August 14
Canada is to produce data on new house price inflation.
The U.S. is to release the weekly report on initial jobless claims.
Friday, August 15
Canada is to publish data on manufacturing sales.
The U.S. is to round up the week with reports on manufacturing activity in New York state and industrial output, as well as preliminary data on consumer sentiment.