Monday, September 1st21.6°C
22817
22642

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

22870


Recent Trending




Today's Market
S&P TSX15625.73+67.561
S&P CDNX1023.991.62
DJIA17098.4518.88
Nasdaq4580.271+22.577
S&P 5002003.37+6.63
CDN Dollar0.9199+0.0005
Gold1281.70-2.1001
Oil95.96+1.29
Lumber349.60+2.60
Natural Gas3.965+0.054

 
Okanagan Companies
Pacific Safety0.20+0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.190.00
Cantex0.08+0.01
Anavex Life Sciences0.25+0.01
Metalex Ventures0.0750.00
Russel Metals36.48+0.09
Copper Mountain Mining2.93+0.02
Colorado Resources0.180.00
ReliaBrand Inc0.10+0.001
Sunrise Resources Ltd0.0250.00
Mission Ready Services0.245-0.005

 



23057

FEATURED Property
19814731678 Pritchard Drive
4 bedrooms 4 baths
$1,575,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


At the Core: Lessons in pricing from Apple

Apple has taught many entrepreneurs the importance of design, how to create buzz when introducing new products to the marketplace, how to pioneer new technology and the importance of superior quality....


New Real Estate Brokerage in town

Move over “big guys” there’s a new brokerage in town featuring local expertise, long standing experience and a fresh boutique approach. Kelowna, August 31 2014 – You may have...


How much mortgage should you carry?

There are several things to consider when deciding how much home to buy. 1. Draw up a budget including the new mortgage payments. While the rules used by most lenders require that the mortgage paym...

_








Member of BC Press Council


22810