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Housing Starts and Building Permits Print better than Consensus

Tuesday 8 October, 2019

Daily Currency Update

CAD - Canadian DollarCanadian September Housing Starts slowed in comparison to August but were still better than expectations. September start printed at 221k while in August we had a figure of 226K, however, economists on average were expecting a 214k print. Building Permits as well signaled strong demographics within the construction industry being created across Canada. Permits for September posted 6.1 percent while previous was 3 percent.The US dollar gained today as American browser sold off with risk aversion at the focal point due to the likely hood of a U.S./China Trade agreement diminishing in the early hours of trading. Risk-off is coming from news that the White House administration added twenty-eight Chinese entities to an export blacklist because of China's repression of Muslim minorities, this would bar these companies from buying U.S. components without governmental approval.

Key Movers

UR/CAD is down at 1.4600 as a slump in German factory orders for the month of August has increased some concerns of a recession. German Factory Orders fell 0.6 percent which was twice as much as forecasted.Over in the UK, BRC Retail Sales reported a drop of 1.3 percent in sales in September over the same period last year which sets a new record low for that month. Several major retailers have reported that Brexit uncertainty has affected their customers with confidence low. GBP/CAD currently trading at 1.6289.

Expected Ranges

  • CAD/USD: 1.3288 - 1.3336 ▲
  • EUR/CAD: 1.4586 - 1.4647 ▼
  • GBP/CAD: 1.6236 - 1.6366 ▼
  • AUD/CAD: 0.8960 - 0.8986 ▲
  • NZD/CAD: 0.8365 - 0.8422 ▲