EURUSD retracement failed around the 1.0900-10 resistance area as the US dollar buyers appeared again.
Canadian housing starts released by the Canadian Mortgage and Housing Corporation registered a reading of 156.3K in February 2015 whereas the market was expecting 179.0K.
US Labor Market Conditions Index posted a reading of 4 in February 2015.
USDCAD continued to stay above the 1.2500 support area, which means it might head back higher.
Canadian housing starts (Canadian Dollar)
US labor market conditions index (US Dollar)
Canadian Housing Starts
Earlier during the NY session, the Canadian housing starts report was released by the Canadian Mortgage and Housing Corporation. The forecast was lined up for an increase of 179.0K in February 2015, compared to the preceding month in which it stood at 187.3K. However, the outcome missed the mark, as the Canadian housing starts came in at 156.3K in February 2015. Moreover, the last reading was also revised down from 187.3K to 187.0K.
The report mentioned that the standalone monthly SAAR was around 156,200 units in February 2015, which is lower by 187,025 units in January 2015. Moreover, the SAAR of urban starts also declined to 140,722 in February, which is around 30K lower compared to the January’s reading of 171,950. Elaborating the report, Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre stated that the “rend in housing starts decreased for a fifth consecutive month in February and reflects a decreasing trend in multiple starts”.
The USDCAD pair traded a touch higher after the disappointing release. The pair gain attempted to clear the 1.2600-10 resistance zone and was seen struggling to clear the same. On the downside, the 1.2550 support area, followed by the 1.2500 remains the key for the pair.
US Labor Market Conditions Index
There was a releases slated in the US as well, as the Labor Market Conditions Index, which is a primary source of common variation among 19 labor market indicators was released. The outcome was on the lower side, as the index fell from the last reading of 4.9 to 4.
US Yields and Stock Market
There was one noticeable thing to note as the ECB started 60-billion-euro-a-month, bond-buying program. The US treasury yields declined to some extent. The stock market traded higher as investors continue to cheer the economic conditions. Futures for the Dow Jones Industrial Average recovered early losses and traded higher by 120 points to 17,980 and the S&P 500 index traded to 2,077.
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