Friday, May 22nd29.1°C
24963
25998

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

26404


Recent Trending




Today's Market
S&P TSX15200.76-2.85
S&P CDNX703.48+2.97
DJIA18232.02-53.72
Nasdaq5089.36-1.43
S&P 5002126.06-4.76
CDN Dollar0.8142-0.0053
Gold1205.70+1.30
Oil57.45-1.98
Lumber273.30+3.70
Natural Gas2.885-0.064

 
Okanagan Companies
Pacific Safety0.13-0.01
Knighthawk0.010.00
QHR Technologies Inc1.48+0.03
Cantex0.03-0.01
Anavex Life Sciences0.425+0.053
Metalex Ventures0.09+0.01
Russel Metals25.79-0.03
Copper Mountain Mining1.38-0.03
Colorado Resources0.105+0.005
ReliaBrand Inc0.0048-0.0049
Sunrise Resources Ltd0.04+0.01
Mission Ready Services0.175-0.010
Decisive Dividend Corporation2.20+0.60

 



26401

FEATURED Property
2299972982 Mt. Bulman Crt
3 bedrooms 3 baths
$449,500
more details
image2image2image2
Click here to feature your property
Please wait... loading


Do or do not

Photo: Thinkstock.com“The optimist sees the rose and not its thorns; the pessimist stares at the thorns, oblivious of the rose.” - Kahlil Gibran Good planning is all about managing chan...


Penetrate the smokescreen

Photo: ContributedHas this ever happened to you? You’re in the middle of your second or third “good discussion” with a prospect. Everything’s going great. The prospect seems en...


Squaring the circle

Photo: Thinkstock.comI have been reading about market segmentation and choice. Howard Moskowitz’s research into tomato sauce as retold by Malcom Gladwell on the TED talks (http://www.ted.com/tal...

_



25482

26112


Member of BC Press Council


25895