CAD: Focus on the housing data – TDS

Research Team at TDS, suggests that the Canada’s economic data will focus largely on housing, with housing starts, building permits and the new housing price index all on the calendar.

Key Quotes

“November housing starts are not expected to drift much from the 193k pace last month; TD looks for starts to edge slightly lower to 190k while the market does not expect any change. October building permits will be release shortly afterwards and are expected by the market to rebound by 2.0% m/m following a 7.0% pullback in September. We will keep an eye on single-unit residential permits, which reached a six-year high last month and sit only a few percent shy of all-time highs. New home prices for October will be released simultaneously and are expected by the market to increase by 0.2% m/m. Q3 capacity utilization is the only non-housing item on the agenda and is expected to rebound to 81.5% for a full correction from the dip in Q2.”

“US: Initial jobless claims are the only economic release and are expected to pullback after last week’s jump to 268k. TD looks for a 259k print, in line with the 257k consensus.”