Housing Stats Help Loonie Against European Currencies

Better housing stats are helping the Canadian dollar against its European counterparts. However, the US dollar is still on something of a tear, and the loonie remains down against its neighbor to the south.

The latest data for housing starts in Canada is helping the loonie gain ground against some of its counterparts today. Housing starts increased by 0.8 per cent in May, beating market expectations. With Canadian homebuilding rebounding, there are hopes that the economy is well on its way to recovery. The severe winter slowed down the process this year, and there have been other concerns for the Canadian economy.
Additionally, at a recent Bank of Canada meeting, policymakers effectively talked the loonie down. This is one of the reasons the Canadian dollar remain lower against the US dollar, which continues on its tear against other currencies. US policy and Canadian policy are diverging, and that puts the loonie at a disadvantage against the greenback right now.
However, the loonie should receive some support from oil prices, which are heading higher again. Oil is a big part of the Canadian economy, and gains help the Canaidan dollar.
At 13:33 GMT EUR/CAD is down to 1.4779 from the open at 1.4822. GBP/CAD is down to 1.8288 from the open at 1.8322. USD/CAD is up to 1.0908 from the open at 1.0904.

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