In Canada this morning, Housing Starts have released at higher than expected levels at 201.7K with forecasts calling for 185.0K in May. Urban Housings Starts are up by 185.2K and Rural Housing Starts are up to 16.47K. Building Permits have also released at higher than expected levels with an increase of 11.6% in April despite analyst forecasts calling for a drop of 5.0%. Today’s increase in Building Permits follows a revised increase of 13.6% from the previous month, showing strength throughout the Canadian economy. It is fairly quiet throughout the United States today with only one release on the schedule. The Labor Market Conditions Index will update for the May period after releasing at 1.9 in the previous update.
Headlines throughout Canada this week include updates to the New Housing Price Index and Manufacturing Sales. The New Housing Price Index is expected to post a slight gain of 0.2% for April following no change in the most recent announcement. Focus in the United States this week falls on updates to the Monthly Budget Statement and Retail Sales. The Budget Statement is expected to release at a deficit of $97.5B for May while Retail Sales are forecast to rise by 1.2% in May.
In the currency markets, the Canadian dollar has shown strength against the USD in early trading this morning, initially caused by the stronger than expected Housing Starts data followed by strong Building Permit data as well. Oil continues its struggle to gain traction, currently trading below $59 per barrel. With a fairly quiet week of economic data out of Canada, CAD traders will be focused on the data out of the United States. The CAD still reacts strongly to developments in the U.S. as they appear to be moving closer towards a rate hike in the future.
Todays expected range: 1.2357 – 1.2457
Posted by Financial Markets