CAD Housing Starts (Mar) Actual 155k, Expected 131k, Previous 135k

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”, said Trade Team Members.

Trade Desk Thoughts: According to the Canadian Mortgage and Housing Corp. (CMHC), housing starts in Canada were at a seasonally adjusted annual rate (SAAR) of 154,700 in March. The seasonally adjusted annual rate of urban starts decreased 17% to 127,900 units in March. Urban multiple starts increased 28.3% to 81,500 units, while urban single starts eased 1.3% to 46,400 units in March. Rural starts were estimated at a seasonally adjusted annual rate of 26,800 units in March. Trade Team Members said “The number was much higher than expected and we may now see the Canadian economy start to pick-up. Of course, this is only one release and Canada still has economic problems, but it’s a start.”

Forex Technical Reaction: The cad (USD/CAD) has moved sideways since the start of the new week, but moved lower after the release. “We are monitoring the cad, which may test 1.2250 and beyond, if the dollar weakens and oil can turn positive,” Trade Team members said.