Skip to comments.Canadian dollar falls as housing starts slow
Posted on 02/15/2014 5:53:05 PM PST by Lorianne
The pace of Canadian housing starts slowed in January with a steep drop in multiple-unit homes, an indication builders are adjusting to a slowdown in buyers, according to Canada Mortgage and Housing Corporation (CMHC).
The agency estimated there were 11,737 actual housing starts in January and that is extrapolated to a seasonally adjusted annual rate of 180,248, down from 187,144 in December.
The Canadian dollar dropped slightly, to 90.45 cents US, on the news. That wiped out gains it made Friday as Canadian employment ticked down to seven per cent. It closed down 0.13 of a cent to 90.46 cents US.
Markets are awaiting a key speech by Fed chair Janet Yellen on Tuesday and the Canadian budget later in the day.
The agency did not say if it believed Januarys extreme cold in most of the country affected housing starts.
The trend in housing starts decreased slightly in January, while the inventory of newly completed and unabsorbed units saw a modest downward trend in the last half of 2013, CMHC deputy chief economist Mathieu Laberge said in a news release Monday.
(Excerpt) Read more at cbc.ca ...
A Loonie below 95 c means a pay cut for the average worker but cheaper exports in the manufacturing sector.
It`s a deliberate gamble by Flaherty in Ottawa with a potential prime rate cut when they opposite would br the correct approach .
Look for them to be pleased with a 85c dollar.