After gaining against the US Dollar in response to the RBA rate cut and better-than-forecast German data, the ‘Loonie’ has fallen from a 12-week high as domestic news failed to live up to expectations.
The Canadian Dollar Exchange Rate was in the region of 0.9955 against the US Dollar as of 14:20 GMT
Although economists forecast a reading of 175,000 for April (down from March’s 184,000) housing starts came in at a seasonally adjusted annual pace of 174,900.
This result may have only been marginally below expectations, but it is still an indication that the nation’s previously hot housing market is cooling and was enough to cause the Canadian Dollar to post modest declines against several of its most traded peers.
The Canada Mortgage and Housing Corporation issued the following statement with the statistics: ‘As expected, the trend in total housing starts continued to moderate in April. As a result, it drew closer to its historical average and is in-line with estimates of household formation. Recent moderation in total housing starts has been led by the multiple starts segment, particularly in Ontario.’
In response to the news Steve Butler of the Bank of Nova Scotia stated: ‘I can see Canada trying to grind a little bit stronger, but there’s lots of interest to buy Dollar/Canada below here. We’re going to have a little more consolidation at these levels and the next move is going to be Canada weakening.’
The next piece of influential Canadian news, the nation’s New Housing Price Index for May, is due for publication tomorrow at 13:30 GMT. Economists have forecast a gain of 2.1 per cent, the same as in February.
Although a surprise with this data could trigger ‘Loonie’ movement, investors will be looking ahead to Friday’s more volatile releases, the Canadian net change in employment and unemployment rate.
Last month the Canadian Dollar plummeted after a surprising loss of 54,500 positions. If economists’ predictions for a 15,000 increase fail to materialise the ‘Loonie’ could record significant declines.
Current Canadian Dollar (CAD) Exchange Rates
< Down > Up
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9955 <
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7562 <
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6417 <
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.9753 <
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.1856 >
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.5586 >
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0043 >
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3225 >
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8486 <
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0252 >
(Correct as of 14:20 GMT)
Comments are closed.