The USD/CAD currency pair rose last week around 200 pips, based on the U.S. and Canada data.
The National Association of Realtors said last week that existing-home sales ran at a seasonally adjusted annual rate of 5.71 million, a 4.4% monthly increase. That was the strongest selling pace since February 2007 and was 5.9% higher than a year ago. Tight inventory is still the biggest factor in the marketplace: supply was 6.6% lower compared to a year ago. According to Statistics Canada, excluding food and energy, the the Consumer Price Index (CPI) was up 1.7% year over year in March, after posting a 2.0% increase in February. Prices were up in five of the eight major components in the 12 months to March, with the transportation and shelter indexes contributing the most to the year-over-year rise in the CPI.
Other potential rate hikes for this year
According to other news, Dallas Federal Reserve President Robert Kaplan said that two more interest rate hikes this year remains possible but that the U.S. central bank has the flexibility to wait and see how the economy unfolds. The Fed has already raised its benchmark interest rate once this year, by a quarter percentage point at its last policy meeting in March.
Kaplan said that three rate increases this year is still a good baseline. The Dallas Fed chief noted he was watching inflation and that even though it continued to slowly move up. Excess capacity in China and technology-enabled disruption of business were both exerting downward pressure.
Oil exports fell
Oil exports fell to 6.95 million barrels a day, the lowest since May 2015, from 7.7 million a day in January, according to data published by Joint Organisations Data Initiative website. Saudi Arabia trimmed exports to a 21-month low in February as local refineries took advantage of more abundant supplies and processed a record amount of crude.