Canada housing data likely to help CAD short-squeeze
We think near-term CAD risks remain to the upside with market consensus and positioning still suggesting investors are negative on the economy and still concerned about the housing market. However, we continue to maintain that these concerns are overdone and this message should come through in today’s housing data. Canada reports existing home sales data for July today. Sales have been running strong so far this year, rising by 3.3% in June and 3.6% in May, in contrast to falling sales reported in Q4 of 2012. On Wednesday, Canada’s Teranet-National home price index was reported up 0.7% in July following two months of 1%+ increases, while on Monday July housing starts also came in better than consensus.
Read the full report: FX Daily
BNP Paribas