Canadian Merchandise Trade Narrows, CAD Under Pressure

Published 2019-05-09, 09:52 a/m

Canada’s March international merchandise trade:

  • Trade Balance: -C$3.2B vs. -C$2.4B
  • Exports: C$49B vs. C$48.0B prior
  • Imports: C$52.3B vs. C$50.9B prior
  • Trade Balance with U.S: C$3.6B vs. C$3.6B prior
  • Trade Balance rest of the world: -C$6.8B vs -6.4B prior

Note: Prior deficit revised worse from -C$2.9B to -C$3.42B

Canada’s trade deficit with the rest of the world narrowed in March on the strength of a broad-based gain in exports.

Canada posted a merchandise trade deficit with the rest of the world of -C$3.21 billion. Market expectations were for a -C$2.4-billion deficit. The previous month’s trade deficit was revised higher, to -C$3.42 billion, because energy exports didn’t increase as much as anticipated.

The March report indicated exports rose 3.2% on a month-over-month basis, while imports climbed 2.5%.

CAD is currently trading at the low of the day outright to the USD at C$1.3495 and is looking to breach the psychological C$1.3500 handle in risk aversion trading.

USD/CAD for May 8-10, 2019.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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