The Canadian dollar continues it sideways trade against the greenback overnight finding resistance at the 1.3000 figure. On the data front yesterday, we saw the release of Canadian Housing Starts for the month in September which dropped sharply from the previous month. Monthly seasonally adjusted annual rates (SAAR) of housing starts was 188,683 units in September, down from 198,843 units in August, and well short of the estimate of 203 thousand.
Looking ahead today and the only scheduled release Building Permits for September with the market forecast of a 0.5% rise in building construction activity. From a technical perspective, the USD/CAD pair is currently trading at 1.2947. We continue to expect support to hold on moves approaching 1.2950 while now any upward push will likely meet resistance around 1.3000.
IMF Financial Counselor and Director Tobias Adrian sent out the message yesterday that "Near-term risks to global financial stability have increased somewhat, and market participants appear complacent about the risk of a sharp tightening in financial conditions." The warning comes with an overall global growth downgrade, as pressures in emerging markets escalate, trade tensions and financial risks with deteriorating global trade relations cited as the cause.