CAD Housing Starts Actual 117k, Expected 140k, Previous 147k
Release Explanation: This report covers the number of new residential Starts reported on a seasonally adjusted annualized basis. “The report acts as a leading indicator on housing market sentiment and the overall economy because they have an important influence on new & existing home sales, employment, retail sales, durable goods orders and GDP 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”. The Trade Team said. Trade Desk Thoughts: The seasonally adjusted annual rate of housing starts decreased to 117,400 units in April from 146,500 units in March, according to Canada Mortgage and Housing Corporation (CMHC).

The seasonally adjusted annual rate of urban starts decreased 24 percent to 96,800 units in April. Urban multiple starts decreased 32.7 per cent to 54,700 units, while urban single starts moved down 8.7 percent to 42,100 units in April.

Forex Technical Reaction: The cad (Usd/Cad) had no reaction to the news release. During the European session, the cad plunged 100 pips, helped by crude oil reaching 6 months high and by the Canadian data coming from the labor market.