The Canadian dollar maintained its stability against the US dollar due to digesting key trade developments and domestic economic reports. A notable 11% surge in building permits, mainly in residential sectors, propelled the total value to CAD 13 billion. Despite this, a 5.9% contraction in non-residential permits highlighted certain economic concerns. Overall, the total permits for 2024 increased by 7.8%, the highest since 2017, but inflation-adjusted growth illustrates tempered optimism at 3.7%. Concurrently, Jerome Powell's cautious approach to US monetary policy amidst tight labor markets adds uncertainty for the Canadian dollar, especially given potential influences of upcoming US inflation data.
The Canadian dollar remains stable against the US Dollar amid trade developments and key economic releases, reflecting mixed signals from domestic and international factors.
Building permits surged by 11% to CAD 13 billion, yet the non-residential sector saw a 5.9% decline, indicating mixed performance in the construction industry.
The total value of building permits rose 7.8% for 2024, reaching its highest level since 2017, though inflation-adjusted growth reflects a more moderate 3.7%.
Jerome Powell's cautious testimony on US monetary policy amid resilient economic growth contrasts with the Bank of Canada's recent rate cuts, creating uncertainty for the Loonie.
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