Canadian Dollar bolster as housing advance more than predictions The Canadian dollar soared versus the majority of its most traded counterparts as new-home construction increased at the fastest pace in more than a year in May, adding to evidence the housing market is regaining momentum. Market Levels The Canadian dollar is trading above its 50-day moving average of C$1.0205 per U.S. dollar and below its 100-day moving average of C$1.0174. When a currency crosses a moving average some traders take it as a sign the currency has momentum to continue the move. Trading Range Implied volatility for three-month options on the Canadian dollar versus its U.S. counterpart traded at 7.39 percent, its lowest point in three weeks. Implied volatility, which traders quote and use to set option prices, signals the expected pace of currency swings. Housing Construction Home construction, which helped lift Canada’s economy out of recession, has been a drag on growth over the past year, according to Statistics Canada data. Construction fell in the first quarter at an annualized 4.7 percent pace, the third-straight drop, the Statistics Agency reported May 31. The Canadian dollar has fallen in the past month along with the currencies of its commodity-exporting cousins Australia and New Zealand among a basket of 10 developed-nation currencies tracked by the Bloomberg Correlation Weighted Index. The loonie has declined 0.9 percent, trailing the 6.1 percent and 5.2 percent drops in the Australian and New Zealand dollars. All other currencies in the index have gained, led by the Japanese yen’s 3.3 percent increase. instaforex/prime_news.php
Posted on: Tue, 11 Jun 2013 13:29:59 +0000
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