Alex Bobrov
On Jan 10th 2011 at 13.30GMT Canada’s National Statistical Agency published the Building permits report containing fundamental data, which are very significant for those who trade USDCAD.
The current value of the indicator is -11.2%.
Previous value: -6.2 % Forecast: 0.8%
Building permits report indicates changes in the net amount of approved dwelling construction projects. It is a macroeconomic indicator showing the state of the most attractive market in terms of investment. It is an excellent indicator of construction sector activity because any construction process starts with getting a building permit. That is why it can be considered an anticipatory indicator. It is very sensitive about any increase in the interest rates as building a house first of all requires lending a loan.
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It has a significant impact on the Canadian Dollar currency rate as it indicates large-scale investments. Moreover, positive values of the index, indicating construction growing activity, have a favorable impact on other economic sectors, increasing wholesale and retail sales, creating new jobs and expanding production capacity, which eventually favor the country’s GDP growth and its economic recovery in general. That is why currency traders and investors should constantly monitor the index in order to determine the current state of the Canadian economy, which in its turn can prompt the forthcoming trend of the Canadian Dollar.
The index is published by Canada’s National Statistical Agency at the beginning of every month.
Alex Bobrov
