The U.S. dollar advanced 0.20 percent versus its Canadian counterpart in the last 24 hours. The pair was trading at 1.3560 during the Asian open and it wasn’t until the start of the US session that the USD/CAD started appreciating and was through the 1.36 price level. At around 12:00 pm EST the rally lost a bit of steam, but the CAD has not presented any arguments for appreciation even as the Canadian new housing data beat expectations with a month over month price increase of 0.3 percent.
Oil offered no support for the CAD as West Texas traded lower after further disputes within the Organization of the Petroleum Exporting Countries (OPEC) and non OPEC members have built up inventories worldwide. The session highs were ahead of the start of the American open at 37.17 and went down as far as 36.18. The WTI is trading at 36.48 at time of writing and unless there is a surprise announcement or a disruption in supply energy prices will remain subdued.
Statistics Canada released the New Housing Price Index (NHPI) showing a 0.3 percent rise in October. The main driver of price gains was the province of Ontario. The Canadian real estate market continues to rise, although at a slower pace as the Bank of Canada and other global organizations have warned that its heating up as personal debt levels are reaching dangerous levels. Specially if the Fed raises rates next week, which would signal an end to the low rates that gave the green light to the housing boom.
CAD events to watch this week:
Friday, December 11
8:30 am USD Core Retail Sales m/m
8:30 am USD PPI m/m
8:30 am USD Retail Sales m/m
10:00 am USD Prelim UoM Consumer Sentiment
*All times EST
For a complete list of scheduled events in the forex market visit the MarketPulse Economic Calendar