Last week the ‘Loonie’ advanced on its US counterpart as Stephen Poloz, the new Governor of the Bank of Canada, made his first economic policy statement and Canadian unemployment rose by considerably more than estimated.
The Canadian Dollar Exchange Rate was in the region of 0.9824 against the US Dollar as of 14:16 GMT
The commodity-driven currency was able to extend gains today as a report revealed that new home construction increased by more than expected last month.
According to Canada Mortgage and Housing Corp, Housing starts soared by 13.8 per cent in May to an annual rate of 200,178 units. May’s figure was upwardly revised to 175,922.
According to CIBC: ‘May’s increase in home building suggests overall housing construction continues to garner support from condominium-related building, although the overall levels are still off from the highs seen in mid-2012 when the market was more frothy.’
Economists expected housing starts to climb to 180,000.
While rural starts were estimated at a seasonally adjusted rate of 22,944 units in May, urban starts jumped 14.6 per cent to 177,234 units.
The Canadian Dollar edged up to 98.19 US cents, and 1.0184 Canadian cents after the data was released
Speaking of the ‘Loonie’s recent advance forex expert Matthew Perrier noted: ‘We’ll probably bounce around in a bit of a range here on a fairly light data week. One strong number doesn’t turn the tide, but we’ll see if it’s a trend that starts to materialize in which case I think the calls for a 90 cent Canadian Dollar start to get pared back rather quickly, but I think we need a few more data points before making that assumption.’
Home-grown data to watch out for this week includes Thursday’s new housing price index and Friday’s manufacturing shipments figures.
Advance US retail sales, due out on Thursday, will also be of interest.
Current Canadian Dollar (CAD) Exchange Rates
< Down > Up – Little Changed
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9824 >
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7425 <
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6317 <
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0391 <
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.2504 >
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.5827 >
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0181 <
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3461 <
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8036 <
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9623 >
(Correct as of 14:16 GMT)
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