Wednesday, October 8, 2014

Canadian dollar is steady on Wednesday

The Canadian dollar is steady on Wednesday. Early in the North American session, USD/CAD is trading in the high-1.11 range. On the release front, Canadian Housing Starts rose slightly to 197 thousand. Over in the US, todays highlight is the minutes of the FOMC most recent policy meeting. Traders should treat this event as a market-mover.
Canadian Housing Starts continued to post solid numbers in September. The indicator rose to 197 thousand, up from 192 thousand a month earlier. This was within markets expectations, as the estimate stood at 195 thousand. Earlier in the week, Building Permits took a plunge. This key release often displays strong volatility, and this was indeed the case in the August reading, as the key indicator came in at -27.3%. This follows three months of strong gains. There was much better news on Monday, as Ivey PMI improved to 58.6 points, up sharply from 50.9 points a month earlier. The strong reading easily beat the estimate of 53.4, as the index hit its highest level in 11 months.