Canadian Housing Starts Fall 7.46% For The Year
Canadian Housing Starts Fall 7.46% For The Year
CAD Housing Starts (Oct) Actual 212k, Expected 202k, Previous 218k
Release Explanation: This report covers the number of new residential Starts reported on an annualized basis. The report act 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.
Trade Desk Thoughts: The seasonally adjusted annual rate1 of housing starts was 211,800 units in October, down from 218,600 units in September, according to Canada Mortgage and Housing Corporation (CMHC).
“Housing starts remained strong in October and are consistent with our new home construction forecast for 2008,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “The slight decrease in housing starts is the result of declines in both single-detached and multiple starts in October.”
In the year to October, housing starts declined 7.46%. Urban multiples declined in October by 6.0 per cent to 115,300 units. Urban single starts decreased 1.1 per cent to 69,300 units in October compared to September.
Forex Technical Reaction: Crude futures rose just over 7% in overnight trading after China announced a 4 trillion-yuan ($586 billion) stimulus package, and the cad has fallen on the day. The loonie weakened a bit immediately after the report was released but if traders speculate demand for oil will increase, Canada’s dollar could find further support.
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