Canadian Housing Starts Improve Off Worst Level in More than a Decade

Annualized [B]Canadian Housing Starts[/B] this morning came in at 128.4K versus expectations for a smaller rise to 126.0K. The more than nine percent jump in starts comes after the indicator fell sharply to the lowest level in more than a decade, dropping from 146.5K in March to 117.6K in April. Looking deeper into the release, starts improved in all regions while the year-over-year contraction remains large at 42.4%. Overall, the improvement is a positive for a recovery in Canada’s economy, and improvements in the building permits for May will add further stability to the housing market. USD/CAD has seen considerable volatility in the early part of this week with a range of more than 100 pips although the pair currently sits at 1.12, just slightly above Friday’s close.

[B]Canadian Housing Starts[/B]