Daily Afternoon Report 18.04.2017

The Canadian dollar fell to one-week lows against its U.S. counterpart on Tuesday, as prices for oil, a major Canadian export fell amid ongoing concerns about global oversupply.

USD/CAD was up 0.38% to 1.3368 by 09.24 ET, the highest level since April 10.

The loonie was pressured lower as oil prices fell amid concerns that a rebound in U.S. production is threatening to derail efforts by other major producers to reduce a global supply glut and rebalance the market.

In Canada, data on Tuesday showed that foreign investment in Canadian securities rose to a record high in February, boosted by cross-border acquisitions and mergers.

Foreign investment in Canadian securities hit a record high of C$38.84 billion ($29.20 billion) Statistics Canada said.

Canadians bought C$6.33 billion in foreign securities in February, purchasing C$4.85 billion in stocks, C$795 million in bonds and C$691 million in money market paper.

In the U.S., the Commerce Department reported that housing starts fell in March, likely due to bad weather, while building permits rose.

Housing starts fell by 6.8% to hit a seasonally adjusted 1.215 million units last month, down from February’s total of 1.303 million units.

The number of building permits issued rose 3.6% to a seasonally adjusted 1.260 million units last month from 1.213 million the month before.

A separate report showed that U.S. industrial production rose 0.5% in March, in line with economists’ forecasts.