Geopolitical and global growth worries dragged the Loonie to the bottom of the forex heap last week. Can this week’s catalysts turn things around for the comdoll?
Housing starts and building permits (Oct 8, U.S. session)
Canada’s housing starts clocked in at 227K in August, which was better than the 213K that analysts had expected and the 222K seen in July.
Building permits also improved, gaining by 3.0% higher than the 2.1% growth expected and the 3.1% decline seen in July.
Market players are expecting a bit of pullback this week, with housing starts probably coming at only 215K while building permits could dip by 2.0%.
These reports don’t usually cause prolonged one-directional move for the Loonie, but significant surprises could support or break intraweek trends for the comdoll.
Labor market numbers (Oct 11, 12:30 pm GMT)
After last week’s sharp IVEY PMI miss, all eyes will be on a possible downside surprise for Canada’s September labor market numbers.
Recall that the economy had added a net of 81,100 jobs in August, higher than the 15,000-increase expected and the 24,200-dip seen in July. As a result, the Loonie traded higher across the board.
Labor market numbers could see pullback this week with net employment possibly showing only a 7,500 gain. Unemployment rate and participation rate are expected to remain at 5.7% and 65.8%, respectively, however.
Missed last week’s price action? Read CAD’s price recap for Sept. 30 – Oct. 4!