USD/CAD Uptrend to Continue Amid Depressing Canadian Housing Starts

Canada – Housing Starts

Today, at GMT 1:15 p.m., the Canada Mortgage and Housing Corporation released its housing starts, which measures the changes in the number of new residential buildings that began construction during the past month. Although this is a monthly data, it is presented in an annualized format.

Binary options traders pay special attention to the housing starts figure because building construction produces a wide ranging ripple effect in the economy as a lot jobs are created by the housing industry in Canada.

Last month, the Canada Mortgage and Housing Corporation housing starts figure came out at 212,000 and the forecast for this month was set at 202,000. However, the actual figure came out much lower than expected, at only 173,000.

United States – Unemployment Claims

On Thursday, at GMT 1:30 p.m., the US Department of Labor will release the unemployment claims figure, which measures the changes in the number of people who claimed for unemployment insurance over the last week.

Binary options investors consider the unemployment claims data to be one of the most important fundamental indicators of the US job market. This is primarily because unemployment and consumer spending has direct correlation and an increasing number of unemployment claims indicate lower consumer spending in the economy, which makes up the bulk of the economic activity in the United States.

Last week, the US unemployment claims figure came out at 277,000 and the forecast for this week is currently set at a slightly lower figure, at 275,000.

Trade Recommendation for the USD/CAD

USDCADDaily

The USD/CAD has remained in an uptrend since the second week of October 2015, and the uptrend accelerated in the start of December. Over the past few months, the USD/CAD formed two distinct uptrend lines in the process.

Last week, the USD/CAD once again demonstrated bullish momentum and closed above the minor resistance around the 1.4000 level. As the Canada Mortgage and Housing Corporation housing starts figure came out much worse than last month, there is a good possibility that the USD/CAD would continue to remain bullish this week.

Under the circumstances, it would be recommended that binary options traders consider placing a CALL order for the USD/CAD with their binary options brokers at the current market price, as long as it remains above the 1.4150 level.

Recommended Broker: Porter Finance

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