For the week of June 11 – 15.
Canadian housing starts in May came in lower than expected at 195.6k, versus expectations of 220k, making it the slowest pace in over a year. The decline was due to multiple starts, which fell 15 percent month-over-month to 125k in May from 147.5k in April. Single detached housing starts rose 2 percent month-over-month to 70.7k from 69.3k. Both Ontario and Quebec experienced large monthly declines in starts; Ontario falling 21.6 percent to 52.4k, and Quebec falling 33.4 percent to 35.5k.
The Canadian economy unexpectedly lost 7.5k jobs in May, while consensus expectations were for a 23.5k gain. Full-time employment fell by 31k in May, while part-time employment offset some of the full time losses with a 23.6k increase. 8.3k manufacturing jobs and 13k construction jobs were lost, while 21.5k jobs were added in the service industry. Comparably, the unemployment rate remained at a record low of 5.8 percent, and the hourly wage gains came in at 3.9 percent year-over-year, breaking the fastest pace since 2009.
Data releases in Canada this week include housing, international securities transactions, and manufacturing sales. Data releases in US this week include CPI, retail sales, various manufacturing figures, and the University of Michigan’s Sentiment gauge. The FOMC will also announce its rate decision on Wednesday, with the consensus expectations for the Fed to bump short term rates up by 25 bps.
The Canadian dollar is under pressure this morning, losing ground against all major currencies on concerns regarding the US targeting the auto sector. Today’s expected trading range is 1.2974 – 1.3074.