THE TAKEAWAY: [US house prices rose 0.6 percent in December] > [Showing the recovery in housing market at a stable pace] > [USD/CAD Mixed]
Home Prices in US Climbed by 0.6 percent as expected in December, for the eleventh consecutive month, indicating that the real estate market is rebounding at a stable pace. According to a report released by Federal Housing Finance Agency today, the S&P/Case-Shiller index of property values in 20 cities increased by 0.88 percent in December from the previous month, the highest rise since July 2012. The medium forecast by economists in a survey polled by Bloomberg Newshad projected a gain of 0.65 percent.
With record-low mortgage rates and the improved outlook of US economy, demands for housing are increasing and as a consequence pushing property prices higher. Despite of new pay-roll tax, consumer spending has shown more confidence as the labor market is recovering. In addition, higher property values have added considerable wealth to households.
USDCAD 1-minute Chart: February 26, 2013
Chart created using Market Scope – Prepared by Renee Mu
In the minutes following the data release, the U.S. dollar dropped against the Canadian currency. Yet the greenback quickly pared its losses and traded higher as markets corrected. At the time of this report, the USDCAD was trading at C$1.0266.
--- Written by Renee Mu DailyFX Research