With Canadian CPI data for the month of October released this morning matching expectations, combined with better than expected Building Permits and Housing Starts data out of the US, USD/CAD shot up and broke through 1.2810 for the first time since November 7th.
Canadian headline consumer prices tracked by the CPI rose at a monthly 0.1% and 1.4% over the last twelve months. In addition, prices stripping out food and energy costs gauged by the BoC rose at an annualized 0.9% and 0.3% on a monthly basis.
Housing starts in the US expanded 13.7% (1.290 million units) in October, while building permits rose 5.9% (1.297 million units) during the same period. Both prints bettered initial estimates.
The US House of Representatives approved a broad package of tax cuts affecting businesses, individuals and families yesterday. This moves the Republicans and President Trump an important step closer to the largest tax code overhaul in a generation. The House bill, which is estimated to increase the federal deficit by nearly $1.5 trillion over 10 years, would consolidate individual and family tax brackets to four from seven and reduce the corporate tax rate from 35% to 20%. It also would scale back or end some popular tax deductions, including one for state and local income taxes, while preserving a capped deduction for property tax payments.
Oil prices rose today but remained on track for the first week of losses in six weeks as concerns grew over Russia’s support for an extension of the crude output cuts that have bolstered prices in recent months. Brent Crude is up ~0.75% trading at ~$61.82 while WTI Crude is up ~1.25% and is trading at ~$55.88.