Canadian dollar is weaker to the USD on a weaker than expected GDP numbers

By MoneyWay | Aug 31, 2021

House prices in the U.S. are now 41% higher than their last peak during the boom of 2006. The main underlying problem to keeping prices higher is lack of supply, this is on both sides of the 49th parallel. Developers have been hit with high lumber prices which have now subsequently, collapsed, however, it has been calculated the full effect of lower lumber won’t be until mid-2022. This is when building permits are expected to increase. Also, here is Canada, municipalities seem to be in a holding pattern in terms of permit approvals, one only has to look at municipal websites that show the time when applications are sent in versus the final approval, it can take years.

The Canadian dollar is weaker after Canada’s GDP data showed a negative number, plus the U.S. consumer confidence impacted the CAD as exports to US are still the biggest proportion of Canada’s exports.

The Canadian dollar will stay on the weaker side and in a narrow range.

Currently*          Close                     Range

USDCAD               1.2628                   1.2620                   1.2569-1.2635

EURCAD               1.4900                   1.4875                   1.4867-1.4932   

GBPCAD               1.7358                   1.7357                   1.7313-1.7378

*Indicative rates only

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