The Canadian dollar was higher Monday amid strong domestic housing data and a greater willingness to take on risk, even as traders kept a close watch on geopolitical flashpoints.
“A volatile global environment, with some easing in concern over Ukraine offset by an escalation in Iraq , is being watched carefully by markets,” observed Camilla Sutton , Chief FX Strategist, Managing Director Scotiabank Global Banking and Markets.
The loonie was up 0.14 of a cent to 91.29 cents US as Canada Mortgage and Housing Corp. reported that housing starts during July came in at an annualized rate of 200,098, up slightly from 198,665 in June.
The currency tumbled over 4/10s of a cent Friday in the wake of a huge miss in July employment data. Only 200 jobs were created last month, a far cry from the estimated 20,000 positions that economists had expected.
On Monday, traders felt more inclined to take on risk after Russia called an end to military exercises near Ukraine on Friday and withdrew troops to their bases.