Forex: USD/CAD: Canadian Housing Starts for May increase to 200,200, above expectations

on Jun 10, 2013
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The pair was not significantly affected by Friday’s positive Canadian data and closed the day’s trading session at 1.0195.In Asian trading today, the USD/CAD hit 1.0217 daily high before subsequently consolidating at 1.0177 during early European trade.

The National Statistics Agency’s data showed Canadian Net Change in Employment for May as adding 95,000 jobs during the month, the highest monthly increase since August 2002.
Canadian unemployment fell to 7.1 percent in May, against April’s 7.2 percent, but full-time employment increased by 76,700 for the same month. The average productivity level q/q of Canadian workers rose by 0.2 percent in the first quarter of 2013.

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US Nonfarm Payrolls increased by 175,000 in May, but unemployment rose to 7.6 percent.
Canadian Housing Starts May data is looking to be the most substantial release for the pair today. Housing starts reflect the rate of growth in housing construction and act as a measure of the strength of Canada’s construction sector and housing market. Some 200,200 new single-family homes and other dwellings were constructed in May, easily bettering the estimates for 178,100.

Commenting on the figures, Mathieu Laberge, Deputy Chief Economist at Canada Mortgage and Housing Corporation (CMHC), observed: “The trend in total housing starts was essentially unchanged in May as gains in the multiple starts segment partly offset the moderation in activity that was observed in previous months, especially in Atlantic Canada and Ontario. As a result, the trend in housing activity remains close to its historical average and is in-line with estimates of household formation”.
Minutes before the positive Canadian release, the USD/CAD had been strongly bearish around 1.0189. Following the positive data, the pair still hovers around 1.0190.

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