Canadian Housing Starts Beat Expectations, Loonie Rallies

The Canadian dollar rallied against its US peer and the Japanese yen today as housing starts outpaced investors’ expectations, adding to positive reports from Canada. The currency retreated against the euro.
Canadian housing starts were at 200,178 units in May (seasonally adjusted), an increase from 175,922 in April. Analysts expected the starts to remain at the same rate as in April. The positive housing data followed the extremely good employment report, giving the loonie (as the Canadian currency is nicknamed) additional strength.
Not all the news was good for the currency. Crude oil fell 0.33 percent to $95.71 per barrel. Crude is Canada’s biggest export.
USD/CAD went down from 1.0217 to 1.0188 and CAD/JPY edged up from 95.72 to 96.91 as of 19:14 GMT today. At the same time, EUR/CAD rose from 1.3479 to 1.3510, rebounding from the low of 1.3434.

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