By Trang Nguyen, THETAKEAWAY: Canadian LeadingIndicators Came in Line with Expectations > Surgesin Financial and Manufacturing Components Compensated Declines inHousing Component and Furniture Sales > the LooniePares Gain Canada’scomposite leading indicators rose for the eighth straight monthin February on significant gain in financial andmanufacturing components. T he report issued byOttawa-based Statistics Canada today showed that the index surged 0.6 percent last month , matching with consensusforecast from Bloomberg News survey. Meanwhile, November readingwas downwardly revised to a gain of 0.4 percent from an advance of0.7 percent initially reported. CanadianLeading Indicator: J une 2010 toPresent Prepared by Trang Nguyen The composite leadingindicator comprised of ten components which significantly affectcyclical activity in the economy and together represent majorcategories of Gross Domestic Product. Six of ten registeredgains in February, two reported decreases and two remainedunchanged. Of six positive contributors, stock index posted alargest percentage gain, up1.7 percent, marking the first increasein five months. Likewise, another financial component money supplycontinued to expand 0.5 percent following 0.8 percent increase inJanuary. Among three manufacturing components, new orders ofdurables goods witnessed the sizable gain in the month, rebounding1.4 percent, contrast with 0.2 percent fall in January. The ratioof inventories to sales also rose for the fourth consecutive month.However, February average manufacturing work week index failed togain for the first time in five months. The housing componentunexpectedly declined after five monthly gains with the housingindex retreating 0.4 percent. Likewise, sales of furniture andappliances slipped 0.3 percent, its sixth consecutive monthlyfall. USDCAD 1-minute Chart: March 21, 2012 Charts createdusing Strategy Trader – Prepared byTrang Nguyen Canadian dollarstrengthened versus most of its major trading partners ahead of theNorth American trading session today. Regardless, the loonie trimsgain to some extent in the minutes following the leading indicatorreport. As can be seen from theone-minute USDCAD chart above, the USDCAD droppedabout 10 pips from 0.9908 to 0.9898. T he
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