TheÂ Canadian dollar today rallied against its US counterpart despite theÂ release ofÂ weak Canadian building permits data byÂ Statistics Canada driving theÂ USD/CAD currency pair toÂ 6-week lows. TheÂ release ofÂ positive US Producer Price Index data could not reverse theÂ currency pair’s downtrend due toÂ positive investor sentiment towards theÂ loonie.
TheÂ USD/CAD currency pair today lost over 75 points toÂ decline from anÂ opening high ofÂ 1.2705 toÂ aÂ low ofÂ 1.2625 atÂ theÂ time ofÂ writing.
TheÂ currency pair was onÂ aÂ downtrend from theÂ start ofÂ today’s session asÂ theÂ commodity-linked loonie was boosted byÂ bullish crude oil prices asÂ tracked byÂ theÂ West Texas Intermediate. TheÂ release ofÂ theÂ positive Canadian housing starts data inÂ theÂ early American session also contributed toÂ theÂ pair’s decline. TheÂ March housing starts came inÂ atÂ 225,200 units asÂ compared toÂ theÂ consensus estimate ofÂ 216,800 units. However, theÂ building permits forÂ February posted aÂ much larger decline than was expected byÂ registering aÂ 2.6% drop asÂ compared toÂ theÂ expected 1.3% decline.
TheÂ release ofÂ theÂ positive US PPI data forÂ March byÂ theÂ Bureau ofÂ Labor Statistics could not boost theÂ currency pair. TheÂ final PPI print came inÂ atÂ aÂ monthly 0.3% andÂ anÂ annualized 3.0% with both prints beating expectations. AÂ rally inÂ US Treasury bond yields also could not uplift theÂ currency pair.
TheÂ currency pair’s future performance is likely toÂ be affected byÂ tomorrow’s US consumer inflation data andÂ theÂ global crude oil prices.
TheÂ USD/CAD currency pair was trading atÂ 1.2617 asÂ atÂ 14:44 GMT having declined from aÂ high ofÂ 1.2705. TheÂ CAD/JPY currency pair was trading atÂ 84.93 having rallied from aÂ low ofÂ 83.92.
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