Canada housing starts
  • Prior was 274.7K (revised to 272.3K)

I've been bearish on Canadian housing on the expectation that the Bank of Canada would keep rates high through the spring but that thinking needs to be reconsidered now as a March/April cut is increasingly likely. There is still some weakness in the pipeline but clearly not as much as before and that takes away a big risk for the loonie.

As for this report, I wouldn't take away too much from one winter month. The numbers are volatile. Canadian wholesale trade is coming up at the bottom of the hour.