Canadian Building Permits Data Heavily Disappoints

THE TAKEAWAY: CAD Building Permits (MoM) (JUN) > -10.3% versus -2.8% expected, from +5.8% (revised up from +4.5%) > USDCAD BULLISH

Canadian Building Permits show a sharp m/m contraction of -10.3% during June, far less than the Bloomberg News survey consensus of -2.8%. This is large decline from May’s +5.8% m/m increase, and today’s data is the first m/m decline since December.

Today’s data highlights concerns about the Canadian housing sector as the economy tries to regain footing amidst tepid global conditions. While the prior three Building Permits prints were optimistic and better than Bloomberg News survey consensus, today’s day may cause investors to reassess the housing recovery.

USDCAD 1-minute Chart: August 7, 2013

Charts Created using Marketscope – prepared by Kevin Jin

The USDCAD is up about +5 pips (at the time of writing) after the poor Canadian Building Permits data. The pair attempted to reach $1.0440 but met resistance just before reaching that level. The USDCAD has made a large run today, up +0.54% at the time of writing, one of the largest gainer out of all the majors. Much of these gains were during London Open.

— Written by Kevin Jin, DailyFX Research

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Canadian Building Permits Data Heavily Disappoints