In May, Canadian housing starts exceeded predictions, reaching 279.5K instead of the expected 248K.

    by VT Markets
    /
    Jun 16, 2025
    **Gold Prices Decline** Ripple (XRP) in cryptocurrencies is showing a short-term upward trend, aiming for the $3.00 mark. This comes as global tensions ease following recent events in the Middle East. Chinese data for May painted a mixed picture: while retail sales were strong, fixed-asset investments and property prices weakened. Yet, these figures suggest that China’s economic growth is on track to meet its 2025 targets. In Canada, a notable rise in housing starts, recorded at 279.5K against an expected 248K, indicates that construction activity is picking up steam, despite some pressure on broader economic indicators. This signals confidence among developers and contractors in future demand. For traders dealing with interest rate-sensitive assets or housing-related derivatives, this growth could lead to higher yields in the Canadian market in the short term. If this trend continues, we may also see changes in expectations regarding domestic monetary policy, which could affect trading strategies related to the Canadian Dollar and related swaps or futures. **Australian Dollar and External Factors** On the other hand, the Australian Dollar is gaining ground primarily due to external factors rather than domestic data. Its rise is linked to a weakening US Dollar and a general increase in risk assets. The currency moved above 0.6500 and climbed to 0.6550 as US yields stabilized and market sentiment improved. Traders should note that this shift is influenced more by short-term positioning and dollar weakness rather than strong economic data from Australia. The sustainability of this trend may rely on upcoming speeches from Fed officials or unexpected updates, especially related to inflation and consumer spending. Adjustments may be needed for positions held in FX options or volatility-based AUD products if signs of reversal appear. The Euro has strengthened against the Dollar, with the pair moving past 1.1600, indicating a broader recovery in risk assets. This shift should not be considered solely due to European performance; it reflects how the Dollar’s correction is affecting currency markets. This environment may favor short-dated calls or spreads related to EUR/USD, especially if combined with staggered trades against less volatile pairs. Upcoming Treasury auctions or central bank minutes could provide additional momentum for this pair, so monitoring economic calendars is advisable. Create your live VT Markets account and start trading now.

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