Saturday, January 31st-3.9°C
24624
23613

Loonie higher amid Canadian housing starts, key employment report on Friday

TORONTO - The Canadian dollar advanced Wednesday amid stronger than expected figures for Canadian housing starts and ahead of a key employment report on Friday.

The loonie gained 0.15 of a cent to 93.81 cents US.

Canada Mortgage and Housing Corp. says housing starts rose to a seasonally adjusted annual pace of 198,185 units in June, compared with 196,993 units in May.

The figures were stronger than the 190,000 units that analysts had been expecting. It is the third consecutive month where starts have hovered around the 200,000 range and another indication that the Canadian housing market is not yet headed towards a slowdown.

The housing starts report came as Royal LePage said Toronto, Vancouver and Calgary are the main driving forces behind increases in home prices nationally.

The real estate company said average prices for condos, detached bungalows and standard two-storey homes increased between 3.9 per cent and 5.2 per cent in the second quarter and are expected to go up steadily for the rest of the year.

The housing data will likely be overshadowed this week by the latest employment figures, due out on Friday. Economists expect Statistics Canada will report that about 24,000 jobs were created last month compared with 25,800 in May, with the jobless rate remaining unchanged at seven per cent.

Although all signs point to a steady recovery in the Canadian economy, portfolio manager Kash Pashootan said he believes the loonie is overvalued and should be in the high-80 cents US range.

However, he is not looking for the loonie to make any major moves amid still-present geopolitical tensions in Ukraine, Israel and Iraq.

"Right now the Canadian dollar is taking a pause," said Pashootan, vice-president at First Avenue Advisory in Ottawa, a Raymond James Company.

"It recognizes that those risks exist and those risks haven't significantly improved or deteriorated."

Meanwhile, commodity markets were mixed, as the August crude contract on the New York Mercantile Exchange plunged $1.11 to US$102.29 a barrel. August gold bullion was up $7.80 to US$1,324.30 an ounce and September copper was down a penny at US$3.25 a pound.

Pashootan said the international tensions have helped drive up the price of gold, but added that "those movements to the upside will be short-lived."

Follow @LindaNguyenTO on Twitter.

The Canadian Press


Read more Business News

23967


Recent Trending




Today's Market
S&P TSX14673.48+37.521
S&P CDNX676.81+9.70
DJIA17164.95-251.90
Nasdaq4635.24-48.167
S&P 5001994.99-26.26
CDN Dollar0.7856-0.0067
Gold1286.60-5.10
Oil49.60+3.16
Lumber322.50+0.70
Natural Gas2.87-0.111

 
Okanagan Companies
Pacific Safety0.120.00
Knighthawk0.010.00
QHR Technologies Inc1.400.00
Cantex0.035-0.005
Anavex Life Sciences0.174-0.006
Metalex Ventures0.040.00
Russel Metals23.42-0.16
Copper Mountain Mining0.99+0.01
Colorado Resources0.150.00
ReliaBrand Inc0.01+0.0031
Sunrise Resources Ltd0.050.00
Mission Ready Services0.2350.00

 



23643

FEATURED Property
1997043142/144 Brookfield Road
8 bedrooms 6 baths
$698,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Leaving a job: changing careers

Many people, who find themselves out of work and with time on their hands, and money in their pockets due to lay-off, start thinking about a career change. If you weren’t happy with the directio...


Service fit makes happy employees

Finding the right employees for the front lines of your company is key to developing a great service attitude within your company. It is just as important as hiring the right accountant, manager, sale...


How to price: workbook approach

In 2008 Self Counsel Press published my book - Pricing Strategies for Small Business. The book is now available in Europe, India, Russia and the United States. The purpose of the book was to make avai...

_





24709


Member of BC Press Council


24975