Canadian Dollar Struggles After Housing Starts Data

Canadian dollar is struggling a bit right now, thanks in part to housing data. The possibility of Fed tapering is also weighing on the loonie, even though it has eked out very modest gains against the greenback after being down earlier.

Housing starts in Canada disappointed. Canada Mortgage & Housing Corp. reports that seasonally adjusted housing starts for November 2013 came in at 192.235. This is down from 198,200 in October, and less than the forecast of 195,000. The news has some concerned that there really is a housing bubble in Canada, and that it could burst and bring the economy down with it.

Loonie has also been struggling on the possibility that the Federal Reserve really is getting ready to end the taper. So far, the economic stimulus attempts in the United States have proved positive, since the stimulus has been supporting stocks.

Canadian dollar has inched higher against the US dollar in the last little while, even though it remains down against other major counterparts. Oil prices are inching upward, and that is helping the cause, as is the general feeling of risk appetite appearing.

At 16:53 GMT USD/CAD is down to 1.0640 from the open at 1.0641. EUR/CAD is up to 1.4604 from the open at 1.4597. GBP/CAD is up to 1.7447 from the open at 1.7393.

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