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Release Explanation: Building permits cover the amount of residential and non-residential Building Permits issued in a month. Act as a leading indicator on the Construction Market sentiment because obtaining a permit is among the first steps in constructing a new building. According to TheLFB-Forex.com Trade Team Members, “The report will affect future sales of new construction and then eventually Retail Sales, GDP and Durable Goods as new additions are fitted out with fixtures and fittings”. “A currency will eventually be affected by these numbers as they are the first phase in the home construction process”. TheLFB-Forex.com Trade Team Members said.
TheLFB-Forex.com Trade Desk Thoughts: Canadian Building permits declined 5.4%, continuing the contraction seen over the last few months. The report was mainly pulled lower by the non-residential side, which declined 14.4% in April, following a 47.9% increase in the previous month. At the same time, residential building permits advanced 4.1% in April
In the non-residential sector, the value of permits fell 14.4% to $2.0 billion. The decrease was largely a result of lower commercial construction intentions in Ontario and lower institutional construction intentions in British Columbia. In the residential sector, the value of permits rose 4.1% to $2.3 billion. This was attributable to increases in single-family permits in eight provinces.
“The release shows that the problems in the Canadian housing market continue, even though the March release painted a very strong picture” TheLFB-Forex.com Trade Team said.
Forex Technical Reaction: The cad tested the high of the session earlier, and at the same time Wednesday’s high, but since then the pair has lost 40 pips.
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