Categories: Market Overview

Double digits growth for Canada New Housing prices

New house prices in Canada jumped 1.4% in May, adding 11.3% to the same month a year earlier. The month-on-month jump in prices more than doubled analysts’ expectations, pointing to an emerging inflationary spiral.

Earlier this week, the Bank of Canada governor noted that such a rapid real estate growth rate is “not normal”. Right now, this is not helping the Canadian dollar, which has come under pressure since the start of the month and is falling sharply this week.

However, it is worth keeping on the periphery that the Bank of Canada was relatively active earlier this year winding down stimulus programmes. Inflation surprises could lead to an even tighter Bank of Canada stance.

A wave of USD strengthening against most currencies forms a rebound in USDCAD. But at the same time, the turbulent price rally and the Bank of Canada’s active stance make the CAD not so weak compared to competitors other than the USD.

The FxPro Analyst Team

The FxPro News Team

This team of professional journalists announces the most interesting and influential articles from the major financial media as a brief summary. All such news may have sufficient potential to affect the course of trading assets.

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