Canadian housing starts likely to have rebounded in September

Canadian housing starts data for the month of September is set to be released tomorrow. According to a TD Economics research report, the Canadian housing starts are expected to rebound to a 225k pace in September on a recovery in multi-unit starts, although there is a scope for another deceleration in single family construction.

Single family starts are at just 0.15k above post-crisis lows but permit issuance continues to trend lower in the midst of an affordability crunch in major population centers. This has aided in underpinning demand for condominiums, which developers have tried to meet with a flood of new supply since 2017. Permit issuance for multi-unit projects saw a sharp fall in June but has begun to come back since, which underpins a stronger pace of starts for September, added TD Economics.

At 13:00 GMT the FxWirePro's Hourly Strength Index of Canadian Dollar was neutral at 18.1876, while the FxWirePro's Hourly Strength Index of US Dollar was slightly bullish at 71.9337. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex