Canadian housing starts likely to have risen in October

Canadian housing starts data for the month of October are set to be released this week. According to a TD Economics research report, the housing starts are expected to have recovered modestly to a 193k pace in the month. Multiunit start is expected to have driven the rebound after falling in the 6 of the last 7 months. Single family starts, in the meantime, are expected to have stayed under pressure in the midst of a trend towards smaller homes.

Single family starts are likely to have reversed their 1.9 percent rise from September which would leave construction activity at its softest rate since 2009.

“This fits with the wider rotation in growth away from consumption and housing, although we would note that non-residential construction has helped offset weakness in the latter over Q3”, added TD Economics.

At 18:00 GMT the FxWirePro's Hourly Strength Index of Canadian Dollar was highly bearish at -103.875, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at -42.9561. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex