Monday, December 22nd5.7°C
24124
24105

Loonie up amid solid housing data, traders take on more risk as tensions ease

TORONTO - The Canadian dollar closed higher Monday amid strong domestic housing data and a greater willingness to take on risk, even as traders kept a close watch on geopolitical flashpoints.

"A volatile global environment, with some easing in concern over Ukraine offset by an escalation in Iraq, is being watched carefully by markets," observed Camilla Sutton, Chief FX Strategist, managing director for Scotiabank Global Banking and Markets.

The loonie was up 0.43 of a cent to 91.58 cents US as Canada Mortgage and Housing Corp. reported that housing starts during July came in at an annualized rate of 200,098, up slightly from 198,665 in June.

The currency tumbled over four-tenths of a cent Friday in the wake of a huge miss in July employment data. Only 200 jobs were created last month, a far cry from the estimated 20,000 positions that economists had expected.

On Monday, traders felt more inclined to take on risk after Russia called an end to military exercises near Ukraine on Friday and withdrew troops to their bases.

The Ukraine government announced Monday that the Red Cross will lead an international humanitarian aid operation into Ukraine’s conflict-stricken province of Luhansk with assistance from Russia, the European Union and the United States.

Such initiatives have previously faced sustained opposition from Ukraine and the West, who had feared they could act as a pretext for sending Russian troops into rebel-held territory.

There have also been worries about the effect of sanctions against Russia and counter sanctions, which could seriously damage a still fragile economic recovery in Europe.

Meanwhile, in Iraq, U.S. warplanes attacked Islamic State militants near the northern city of Irbil, capital of the Kurdish region, in hopes of limiting their advance and keeping them away from oil fields.

In China, that country's consumer price index in July stayed at 2.3 per cent, well below the official target for the year of 3.5 per cent. That gives the Chinese central bank room to ease access to credit if needed to shore up economic growth, which was 7.5 per cent in the latest quarter

On the economic front, there are two other major Canadian pieces of data coming out this week. The new housing price index is released Thursday while the latest read on manufacturing shipments for June is out Friday.

In the U.S., the major report for the week if July retail sales on Wednesday.

On the commodity markets, September crude on the New York Mercantile Exchange gained 43 cents to US$98.08 a barrel.

The positive news from China failed to lift metal prices and September copper was unchanged at US$3.17 a pound, while the increased appetite for risk pushed December gold down 50 cents to US$1,310.50 an ounce.

Note to readers: This is a corrected story. A previous story incorrectly said that Canadian retail and inflation data would be released this week.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14447.19-21.069
S&P CDNX672.16-4.38
DJIA17901.0096.20
Nasdaq4765.684+0.304
S&P 5002070.47-0.18
CDN Dollar0.8589-0.0028
Gold1189.40-6.50
Oil56.50+2.39
Lumber337.70-0.30
Natural Gas3.169-0.295

 
Okanagan Companies
Pacific Safety0.125+0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.21-0.04
Cantex0.03-0.005
Anavex Life Sciences0.1712-0.0014
Metalex Ventures0.05-0.005
Russel Metals25.17-0.41
Copper Mountain Mining1.57+0.02
Colorado Resources0.11-0.01
ReliaBrand Inc0.011-0.0089
Sunrise Resources Ltd0.02-0.03
Mission Ready Services0.23+0.015

 
24130




FEATURED Property
210808411 - 695 Westside Road
3 bedrooms 4 baths
$1,499,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


First-time homebuyer mistakes

If you’re on the hunt for your first home and want to have a smooth and successful home purchasing experience avoid these common first-time homebuying mistakes.If you are looking for your first ...


My final thoughts on real estate

This will be the last column I write on real estate. Largely because at the end of the year I will be handing in my license. After 20+ years of working in land development, resort development and rea...


Reflecting on the end of the year

The importance of the end of the year and the Christmas holidays is profound. It is a time to reconnect with family and traditions that have made us who we are. But the year-end has always been a time...

_



24586

24586


Member of BC Press Council


23860