Investing.com - The U.S. dollar was lower against the Canadian dollar late Friday following the release of upbeat U.S. housing sector data, which offset a report pointing to a deterioration in U.S. consumer sentiment.
USD/CAD ended Friday’s session at 1.0863, down 0.17% for the day. For the week, the pair lost 0.32%.
Investor sentiment was boosted after the Commerce Department reported that U.S. housing starts jumped 13.2% in April, after a 2.0% increase in March.
It was the largest increase in five months, indicating that the economy is shaking off the effect of a weather related slowdown over the winter.
The upbeat housing data was offset by a report showing that U.S. consumer confidence deteriorated in May. The University of Michigan''s consumer sentiment index dropped to 81.8, from 84.1 the month before. Analysts had expected a slight uptick to 84.5.
Earlier in the week risk appetite was hit by concerns over the outlook for global growth after data showed that the euro zone economy grew less strongly than forecast in the first three months of the year.
The euro zone’s gross domestic product grew just 0.2% in the first quarter, compared to expectations for growth of 0.4% and expanded by a smaller than expected 0.9% from a year earlier.
In Canada, data on Friday showed that foreigners reduced their holdings in Canadian securities in March, while Canadian investors purchased foreign securities at the fastest pace in 16 months.
Statistics Canada said foreign investors sold a net C$1.23 billion in Canadian securities, while Canadian investors acquired C$7.88 billion in foreign securities, the largest investment abroad since November 2012.
In the week ahead, investors will be looking to the minutes from the Federal Reserve''s latest monetary policy meeting, due for release on Wednesday, for insight on the central bank''s view of the economy.
Canadian data on retail sales and consumer prices 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.
Monday, May 19
Markets in Canada are to remain closed for a national holiday.
Canada is to publish data on wholesale sales.
In the U.S., Federal Reserve Bank of Philadelphia Charles Plosser and Federal Reserve Bank of New York President William Dudley are to speak.
Wednesday, May 21
Fed Chair Janet Yellen is to speak at an event in New York.
Later Wednesday, the Fed is to publish the minutes of its May meeting.
Thursday, May 22
Canada is to release data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity.
The U.S. is to release its weekly report on initial jobless claims and private sector data on existing home sales.
Friday, May 23
Canada is to publish data on consumer price inflation, which accounts for the majority of overall inflation.
The U.S. is to round up the week with data on new homes sales.