The Pound softened against the Canadian Dollar on Thursday as housing data released in the North American nation came in positively.
According to a report released by Canada Mortgage and Housing Corp, Canadian housing starts increased more than forecast in April as better weather and an improving economy bolstered demand.
The data also suggests that the Canadian housing market is beginning to stabilise.
The data showed that the number of new housing starts increased by a seasonally adjusted figure of 194,809 in April from the previous month’s figure of 156,592.
The figure beat economist expectations for a rise of 175,000.
“The six-month moving average for starts was 183,515 suggesting that the new-home construction market is heading for a soft landing this year.
‘Over the remainder of the year, builders are expected to continue to adjust activity, particularly with respect to multiples, in order to manage inventory levels,” said CHMC deputy chief economist Mathieu Laberge.
Adding further support to the ‘Loonie’ was a separate report released by Statistics Canada which showed that its new home price index rose by 0.2% in March and by 1.6% on a yearly basis.
The monthly figure matched forecasts but the yearly one exceeded the prediction for a figure of a 1.5% rise.
Following the data release the ‘Loonie’ advanced to its best level in a month against the US Dollar.
Looking ahead to tomorrow’s session the Canadian Dollar could make further gains against the Pound and US Dollar if the latest domestic unemployment data shows an improvement.
Economists are forecasting that the nation’s jobless rate will increase to 7%.
Sterling will experience movement due to the publication of industrial and manufacturing production reports. Both are expected to show an improvement on the previous month’s figures.
Canadian Dollar (CAD) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Canadian Dollar,
,Pound Sterling,0.5423 ,
Canadian Dollar,,US Dollar,0.9195 ,
Canadian Dollar,,Euro,0.6629 ,
Canadian Dollar,,Australian Dollar,0.9809,
Canadian Dollar,,New Zealand Dollar,1.0640 ,
US Dollar,,Canadian Dollar,1.0876 ,
Pound Sterling,,Canadian Dollar,1.8439 ,
Euro,,Canadian Dollar,1.5074 ,
Australian Dollar,,Canadian Dollar,1.0194 ,
New Zealand Dollar,,Canadian Dollar,0.9405 ,
[/table]
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