Weak data from USA and Canada weaken North American currencies
The beginning of the US session brought important macroeconomic publications on the real estate market – building permits and housing starts. The results turned out to be worse than forecasts, resulting in depreciation of USD and CAD.
Continuation of the downward trend on the US real estate market
The value of commenced construction of houses in May reached a strong decline of -5.5% (the final reading is 1.092 million, with forecasts of 1.215 million and April results of 1.156 million). Historically, we are dealing with a fourth month of declines in a row after this year’s and practically multi-annual summits in early 2017.
The situation is similar in the case of building permits. Growth at -4.9% was triggered by the decrease of 1,228 million to 1,168 million in April (forecast 1,250 million).
According to economists, the current problems are only temporary – the building sector is struggling with the lack of space for investment and access to trained workers. In terms of historical trends, the market’s condition is still very solid.