By FX Empire.com
The USD/CAD pair was little changed on Tuesday, as rising fears that Italy could be next victim of the European debt crisis overshadowed better than expected housing starts in Canada. Fears from the EU debt crisis continued to dominate markets ahead of a key confidence vote for Italian Prime Minister Berlusconi, where yields on Italian bonds rose to a record high in the euro zone era amid concerns over Italy’s fiscal health.
Meanwhile, Canada released the housing starts for October, where housing starts rose to 207.6 thousand, compared with the prior estimate of 205.9 thousand and above median estimates of 195.0 thousand, which provided the Canadian dollar with some bullish momentum that led the USD/CAD pair to pare its gains.
Traders will continue to monitor the developments from Europe regarding the debt crisis, especially amid the lack of major economic data from Canada and the United States, but overall, we expect the USD/CAD pair to extend its gains over the coming period.
Wednesday November 09:
Canada will release the new housing price index for September at 12:30 GMT, where the index is expected to rise by 0.1% in line with the prior rise.
The United States will start the session at 15:00 GMT with the wholesale inventories for September, with expectations that the index could have expanded by 0.6% from 0.4%.
Originally posted here
