Canada's New Housing Price Index falls in November. Business survey drops. CAD down in Forex Trading. | CountingPips Forex Blog

January 12, 2009 - Forex Economic News

Canada's New Housing Price Index falls in November. Business survey drops. CAD down in Forex Trading.

Canada's New Housing Price Index decreased in November according to a report released today by Statistics Canada. The Canadian New Housing Price Index fell for the second month in a row in November as the index declined by 0.3 percent for the month following a decline of 0.4 percent in October. Despite the monthly decline, the housing index increased on an annual basis as Loonie falls in Forex Trading November's annual rate edged up by 0.7 percent over the November 2007 level. October's housing index registered a 1.5 percent increase over October 2007.

The measured area with the highest monthly increase in November was the city of St. John's with a 3.4 percent increase. St. John's also posted the highest annual rate of increase in November with a 25.6 percent increase over November 2007 while the city of Regina also posted a notable 21.7 percent annual increase. On the downside, posting declines for November were Calgary with a 1.1 percent drop, Saskatoon with a 0.5 percent fall and Edmonton with a 0.3 percent decline in November. On an annual basis, Edmonton and Calgary showed the biggest declines from November 2007 with declines of 7.9 percent and 2.5 percent, respectively.

Canada Business Survey falls.

A survey released today by the Bank of Canada showed that business sentiment has declined in Canada. In its winter 2008-2009 report, the Bank of Canada business survey showed that businesses feel that future sales volume will decline through this year when compared with the previous twelve months. Fifty-seven percent of survey respondants said that the next twelve months will probably see decreased sales volumes compared with 23 percent who said that sales volume would increase and 20 percent who said that sales would be the same. Survey respondants also felt that their businesses would spend less on machinery and equipement, future employment levels would decrease, that credit conditions have tightened and prices would continue to fall in the next 12 months.

The Bank report commented on the data saying, "Business sentiment has deteriorated markedly since the autumn survey, as the effects of the international financial crisis and the weak global economy intensified and spread to domestic demand. Almost all indicators are at their lowest level since the survey began in 1997."

Canadian Loonie falls in forex trading.

The Canadian loonie has been losing ground in the forex markets versus the other major currencies today. The U.S. dollar has gained ground versus the loonie from today's opening exchange rate of 1.1933 at 00:00 GMT to trading at 1.2147 this afternoon in the US trading session at 2:51pm EST.

The euro has advanced versus the loonie in trading as the EUR/CAD currency pair has gained from its 1.5975 opening to trading at 1.6271. The British pound has edged up versus the loonie to trading at 1.8027 after opening the day at 1.8003.

The loonie has lost ground against the Japanese yen as the CAD/JPY has declined from 75.51 yen per loonie to trading at approximately 73.28. The Australian dollar has gained ground versus the loonie as the AUD/CAD has gone from 0.8245 to trading at 0.8301 today while the New Zealand dollar has also gained against the CAD as the NZD/CAD trades at 0.7034 from 0.6987.

USD/CAD Chart - The US Dollar gaining today against the Canadian Loonie and extending above the 21 day moving average. (Daily Chart).

Today's Forex Chart

tags: Canada Housing Prices, CAD, Business sentiment, forex trading

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