BS: Canadian Dollar Fluctuates as Housing Starts Exceed Forecast
Canada’s dollar fluctuated against its U.S. counterpart after a report showed the nation’s housing starts last month exceeded forecasts.
The currency was weaker versus most of its 16 major peers as construction was started on 193,637 units at a seasonally adjusted annual pace in September, up from 184,000 the month before, Ottawa-based Canada Mortgage & Housing Corp. said on its website. Economists forecast a reading of 185,000, according to the median of 21 responses to a Bloomberg News survey. The government shutdown continue it the U.S., Canada’s largest trading partner.
“We’ve been in a very tight range,” Camilla Sutton, head of currency strategy at Bank of Nova Scotia, said by phone from Toronto. “Housing starts were a little stronger than expected, but they didn’t really change the overall trend. The focus is on the U.S. government shutdown and how it relates to Fed policy and growth outlook.”
STORY: Who Wants to Buy BlackBerry? Prem Watsa Does
The loonie, nicknamed for the image of the aquatic bird on the C$1 coin, was little changed at C$1.0317 per U.S. dollar at 8:33a.m. in Toronto. One Canadian dollar buys 96.93 U.S. cents.
Canada’s benchmark 10-year government bonds declined, pushing yields up two basis points, or 0.02 percentage point, to 2.59 percent. The 1.5 percent securities maturing in June 2023 lost 19 cents to C$90.76.
Canada’s trade deficit unexpectedly widened for a second month in August as imports rose to a record, outweighing exports to the U.S. that reached the highest since the end of 2011.
STORY: Wall Street Shows Calamity Fatigue as Potential U.S. Debt Default Looms
The August deficit increased to C$1.31 billion ($1.27 billion) and July’s shortfall was raised to C$1.19 billion from an initial C$931 million, Statistics Canada said today in Ottawa. The deficit exceeded all 20 economist forecasts in a Bloomberg survey that had a median estimate of C$700 million.
To contact the reporter on this story: Joseph Ciolli in New York at jciolli@bloomberg.net
To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net
