Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Canadian Dollar Shrugs As Building Permits Sparkle

By Kenny FisherForexDec 01, 2021 10:18AM ET
Canadian Dollar Shrugs As Building Permits Sparkle
By Kenny Fisher   |  Dec 01, 2021 10:18AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

The Canadian dollar has edged lower on Wednesday. In North American trade, USD/CAD is trading at 1.2743, down 0.27% on the day.

Canada’s Building Permits Beats Expectations

It has been a relatively quiet week for the Canadian dollar, despite some solid releases out of Canada. Building Permits for October increased 1.3% m/m, crushing the consensus of -1.0%. The indicator gained 4.3% in September. This follows a robust GDP for Q3 of 5.4% y/y, much better than the forecast of 3.0%. A major driver for the strong gain was consumer spending, as health restrictions were eased and consumers were able to go out and spend. The economy grew by 0.8% in October m/m and has almost completely recovered to its pre-pandemic level of February 2020.

Despite this week’s strong numbers, the Canadian dollar has shown limited movement. Investors remain concerned about the Omicron variant of COVID, which has spread rapidly and could cause another wave of COVID. Preliminary reports indicate that the symptoms from Omicron have been mild. This has led to hopes that global economic activity will not be greatly affected by the variant. Still, until more information is available about Omicron, risk appetite will be subdued and this will weigh on minor currencies like the Canadian dollar.

The markets were upended by the appearance of Omicron on the global stage last week, and then Fed Chair Jerome Powell came along with a surprise of his own. Powell made a hawkish turn in his testimony before a Senate committee, which surprised the markets. Powell retired the word “transitory” from his description of inflation, a label that the markets essentially discarded months ago. As for the burning issue of tapering, Powell stated that a speeding up of the unwinding of the taper scheme would be discussed at the December meeting. Powell’s abrupt move has led to more uncertainty in the markets, which means investors should be prepared for further volatility.

 USD/CAD Technical

  • There is support at 1.2681. Below, there is support at 1.2569
  • The next resistance line is at 1.2852, followed by 1.2911
  • USD/CAD Daily Chart.
    USD/CAD Daily Chart.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Canadian Dollar Shrugs As Building Permits Sparkle

Related Articles

Canadian Dollar Shrugs As Building Permits Sparkle

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email