Canadian dollar jumping to surge on healthy housing business

The Canadian new building permits rose way beyond forecasted numbers in April fuelling optimism over the health of the country's real estate sector official data showed on Monday.

The statistic Canada reported these numbers rose by a seasonally adjusted at 11.6% in April which is much more than forecasts at 3.4%.

Housing strats rose to 202K from previous 183K. This healthy increase in April stemmed from higher construction intentions in both the residential and non-residential sectors in Ontario.

Currency Roundup:

USD/CAD was trading at 1.2406 following the release of the data from around 1.2424 before.

Since we had anticipated a downtrend on this pair soon after it breached trend support at 1.2464 levels, now it continues to slide further to find stronger support which is seen at around 1.2379 and next at 1.2298 levels.

We had advocated bullish strategy on Canadian dollar in our recent posts also. We continue to remain firm on that stance of bullish standpoint.