Archived IMT (2009.04.08)

Better than expected Canadian housing starts are supporting CAD across the board, lifting it to 3rd best performing currency after JPY and JPY. CAD traders must be cautious of Thursdays release (not Friday) of the Canadian March jobs report, expected to show unemployment rate rising to 7.9% from 7.7% with payrolls seen falling by 50K following a decline of 83K in the prior month. Canadian economic data has clearly lagged behind that of the US and Canadian unemployment is a case in point. This means we could well see unemp rate surprising on the upside above 8.0%, with payrolls potentially losing twice as much. CAD trade figures tomorrow will also be key as these have shown an increase in the nations trade deficit due to plummeting demand from US. Support stands at 1.2270.