USD/CAD slowly turned lower in early European trading as bids in the 1.0320/30 zone capped the pair at 1.0317.
The downside in this pair bears close watching after the CAD shrugged of Friday’s dismal jobs report. The Canadian press is rife with chatter about the housing market at the moment, especially a report from little-know RealNet saying that residential land investments for future home building is down 52-30% in three of Canada’s biggest cities.
A top housing economists at one of Canada’s biggest banks, CIBC is also putting a cooler on the market.
“If I was a speculator, I would not be buying,” he says. “The days of flipping houses and speculating on increasing prices are clearly coming to a close. We are in the ninth inning of this boom.”
In short, it’s easy to find reasons to buy USD/CAD at the moment but the market isn’t responding and sometimes that’s the best signal of all.
