Home Fundamental Comment Canadian dollar advances after upbeat building permits figures

Canadian dollar advances after upbeat building permits figures

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Canadian dollar advances after upbeat building permits figuresThe Canadian dollar advanced against its U.S. counterpart after a report showing Canada building permits soared more than forecast on April.

The value of permits issued for the month climbed 11.6 percent in April, beating analysts; forecasts of 3.4 percent advance.

Housing starts reached 202,000, compared with both revised and expected readings of 183,000 and 187,000 respectively.

The upbeat figures gave a boost to the loonie, pushing the USDCAD to set a new low of 1.2395 after hitting a high of 1.2470.

The dollar retreated on Monday against majors as President Barack Obama told leaders of the Group of Seven that the dollar’s strength is a problem, according to a French official with knowledge of the talks.

The breach of the support line helped the USDCAD pair to drop, where the RSI 14 momentum indicator resumed its fall below the 50 line heading towards the 30 line.

The bearish cross of SMA 7 over SMA 15 on the four-hour chart supported the drop, yet it found some support at 1.2400.

In case the pair resumed its fall, it will probably find support at 1.2358, while key resistance is located at 1.2468.

Canada building permits lift loonie

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Ahmed Mamdouh Ahmed Mamdouh, Co-Founder and Head of English Fundamental Analysis at FXComment.com, with 7 years of experience in the financial markets. Mamdouh holds a Master’s Degree in Economics from The American University in Cairo and a Bachelor Degree in Economics from The Faculty of Economics and Political Science, Cairo University.

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