Canadian Dollar Climbs on Building Permits

The Canadian dollar traded near the highest level in three weeks against its US peer and at the strongest price in a month versus the Japanese yen after building permits surged. Not all news was good for the currency and it fell against the euro.

Building permits jumped by whooping 20.7 percent in July after falling 10.6 percent in June. The forecast of 4.4 percent growth was nowhere near the real increase. Tomorrow’s housing starts are expected to show stable growth, adding to signs of robust health of the Canada’s economy.

There are speculations about possible peaceful resolution of the conflict in Syria. Usually, such news would be good for growth-related currency, but in this instance easing tension led to drop of crude oil, the major export of Canada. Crude slumped as much as 1.4 percent to $108.94 per barrel.

USD/CAD was down from 1.0366 to 1.0361 (the lowest since August 8) as of 4:30 GMT today after sliding from 1.0411 yesterday. EUR/CAD climbed from 1.3707 to 1.3748 on the previous trading session and traded near that level on the current session. CAD/JPY advanced from 95.98 to 96.10 — the strongest price since August 2.

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