CAD Building Permits Drop by 2.5%, IVEY PMI Up to 62.8, Loonie Steadily Strengthens - 7.8.2012

The number of new building projects in Canada fell by 2.5% in June down from a revised 7.1% jump in May according to the Statistics of Canada, however economists forecast was for a 3.6% drop. The negative data on Building permits indicates a worsening housing market in Canada, the greatest declines were in the Alberta and British Columbia provinces. Furthermore, the seasonally adjusted Canadian Purchasing Manager Index unexpectedly rose to 62.8 in July up from 49.0 in June according to the Ivey School of Business, indicating expansion in the economic activity since it is above the 50 mark. The Loonie continued strengthening against the greenback at the intraday trading. Biased to the down side, the USDCAD dropped below 0.9980, heading to 3-month lows.