– Equities, AUD, and NZD rally
– No major surprises from the Eurogroup
– Canadian housing starts likely to weaken
What to watch for today
CAD: Housing pullback. We expect housing starts to fall from 223.8K to 210K in September, slightly above consensus at 205K. The decline in housing starts would in our view represent another piece of evidence of what we believe is an ongoing correction in the sector. The poor state of the sector, combined with CAD strength will likely keep the BoC from acting on its conditional hawkish stance and CAD remains vulnerable at current levels of USDCAD, in our opinion.
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