Canada Surplus Widens with Auto Export Boost

Canada posted the widest merchandise trade surplus in almost six years in July as automobile shipments led exports to a record high.

The surplus grew to C$2.58-billion ($2.37-billion), the largest since October 2008, from C$1.83-billion in June, as exports rose to a record, Statistics Canada said today in Ottawa. Motor vehicle and parts shipments jumped 9.7 per cent to C$6.9-billion.

Canada needs sustained export gains to encourage businesses to boost investment and carry the world’s 11th largest economy to full output over the next two years, the country’s central bank said yesterday. The Bank of Canada kept its key interest rate at 1 per cent to extend the longest pause since the 1950s saying that increased U.S. demand and a weaker currency aided exports in the second quarter.

via Globe and Mail

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza