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Canadian Leading Index Actual -1.1%, Expected -0.9%, Previous -1.5% (Revised from -1.3%)
Release Explanation: The Leading Indicators Index measures the percentage change in the index from previous month. It measures overall economic health by combining 10 indicators such as building permits, new orders, money supply, average workweek.
TheLFB-Forex.com Trade Desk Thoughts: The rate of decline of the smoothed version of the leading indicator slowed from 1.5% in March to 1.1% in April. Both financial components increased in the month, as the money supply expanded steadily while the stock market turned up. The unsmoothed version of the index rose 0.5%, after seven straight declines.
The indicators of household demand continued to descend. The drop in the housing index eased to 1.2%, the smallest decline in seven months, as existing home sales firmed. Sales of durable goods continued to retrench. A levelling off of services employment originated more in personal than business services.
Forex Technical Reaction: The cad is trading slightly above the 1.4650 support level, after declining 75 pips during the overnight session. If it manages to break the support level, the cad would reach the lowest value seen since October 2008.
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