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The dollar rose sharply against the euro, while restoring all previously lost ground, despite the lack of drivers for this move. Note that initially the pressure on the dollar was weak data on the number of Housing Starts. As it became known, the total number of housing starts in the U.S. rose by 5.9% in July compared with the previous month to a seasonally adjusted annual rate of 896,000 units. Construction of multi-family housing, including apartments, rose 26%, while single-family housing declined Share 2.2%. Compared with a year earlier, the whole establishment of new homes rose by 20.9%. Economists forecast that overall housing starts will rise by 8.9%.
Add that are not pleased as the data and consumer confidence. The preliminary results of the studies that were presented Thomson-Reuters and the Michigan Institute in August, U.S. consumers are feeling more pessimistic about the economy than had been recorded in the last month. According to a report in the August consumer sentiment index fell to 80.0, compared with a final reading for July at 85.1. It is worth noting that according to the average estimates of experts, the index should have grown to the level of 85.6.
However, even this did not prevent the negative dollar rise sharply. We add that the central theme for the dollar remains the impact of news on the likelihood of reducing the redemption of bonds by the Fed. Today's news, rather, added questions about whether the Fed reason for this step, as the index of consumer confidence in the U.S. declined significantly in August compared with July.
The cost of the Canadian dollar fell against the U.S. dollar, which was due to the expectation of the release of data for Canada, which had a worse than expected.
Statistics Canada reported Friday that shipments in the manufacturing sector fell unexpectedly in June, showing the fourth drop in six months, due to lower sales of jewelry and silver, metal, and wood products.
Deliveries in the manufacturing sector decreased by 0.5% to 48,220 million Canadian dollars ($ 46.8 billion), after a revised down 0.6% gain in May. Economists had expected delivery in the manufacturing sector of the industry will grow by 0.5% after rising 0.7% the previous month, which was originally reported.
Also, the report showed that inventories in the manufacturing sector in June fell by 0.2% compared with May, and unfilled orders in the manufacturing sector grew in June by 2.7% compared to the previous month.
New orders in the manufacturing sector in June rose by 2.5% compared with May. The ratio of reserves / supply to the industrial sector in Canada in June of 1.42:1.
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