CAD: Housing starts and oil - the focus for the CAD

Better economic data (employment and PMIs) have supported the CAD over the past week despite the negative headwinds from lower oil prices. 

The coming week is light in terms of data. The market is looking for an increase in housing starts back to the average levels seen over the past year following the softening in the winter months. 

"We continue to expect the CAD to weaken over the coming months as lower oil prices feed through to lower investment and consumption through a weaker labor market. We remain short CADMXN",said Barclays in a report on Monday.