The U.S. dollar moved higher against the Canadian dollar on Friday as investors shied away from risk sensitive currencies amid ongoing concerns over the crisis in Ukraine and slowing growth in China. Forex - USD/CAD weekly outlook: March 17 - 21U.S. dollar pushes higher against Canadian dollar at weeks end USD/CAD ended Friday’s session up 0.28% at 1.1104. For the week, the pair slipped 0.11%. The pair is likely to find support at 1.1042, Thursday’s low and resistance at 1.1152, Wednesday’s high. Market sentiment was hit after weak economic reports from China raised fresh concerns over the strength of the world’s second-largest economy. On Thursday, Chinese Premier Li Keqiang warned that the economy faced severe challenges in 2014. Fears over problems in China’s financial sector also sapped risk appetite following the country’s first domestic bond default this month. Meanwhile, tensions between Russia and the West remained high ahead of Sundays referendum in Ukraine’s Crimea region, now controlled by pro-Russian forces, on whether citizens want to join Russia. The referendum has been condemned as illegal by Kiev and the West and is expected to prompt the west to impose sanctions on Russia. In the U.S., data on Friday showed that consumer sentiment declined unexpectedly in March. The University of Michigan consumer sentiment index ticked down to 79.9, from the 81.6 final reading in February. Analysts had expected the index to improve to 82.0. In the week ahead, investors will be looking ahead to Wednesday’s monetary policy announcement by the Federal Reserve. The bank is also to publish its economic forecasts. A speech by Bank of Canada Governor Stephen Poloz on Tuesday will also be in focus. Ahead of the coming week, Investing has compiled a list of these and other significant events likely to affect the markets. Monday, March 17 Canada is to produce data on foreign investments. The U.S. is to publish data on manufacturing activity in the Empire State, as well as reports on industrial production and long term securities transactions. Tuesday, March 18 Canada is to publish data on manufacturing sales. Later Tuesday, BoC Governor Steven Poloz is to speak, his comments will be closely watched. The U.S. is to produce data on consumer inflation, in addition to reports on building permits and housing starts. Wednesday, March 19 Canada is to release data on wholesale sales. The Federal Reserve is to announce its federal funds rate and publish economic forecasts for inflation and growth. The Fed statement is to be followed by a press conference with Chair Janet Yellen. Thursday, March 20 The U.S. is to publish the weekly report on initial jobless claims, as well as data on existing home sales and manufacturing activity in the Philadelphia region. Friday, March 21 Canada is to round up the week with official data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity, as well as data on consumer inflation. Ihab Helme - YesOption.
Posted on: Mon, 17 Mar 2014 07:39:39 +0000
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