Canadian Trade Has 2nd Consecutive Surplus in December

Canada posted a second consecutive monthly trade surplus in December for the first time in more than two years, thanks largely to booming crude oil exports, Statistics Canada said on Tuesday.

The $923-million surplus exceeded analysts’ forecasts of a $350-million positive balance. Statscan revised November’s surplus sharply higher to $1.01-billion from an initial $0.53-billion.

The last time Canada recorded back-to-back trade surpluses was in August and September 2014. Although exports rose by 0.8 per cent in December, volumes actually fell by 1.4 per cent.

Energy product exports jumped by 15.9 per cent, the biggest month-on-month leap in six years, on strength in crude oil and bitumen. Exports of motor vehicles and parts fell by 5.2 per cent while exports of metal ores and minerals slumped by 12.6 per cent.

Imports increased by 1.0 per cent on higher imports of aircraft and other transportation equipment as well as metal products. Volumes grew by 0.4 per cent.

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