Canada Merchandise Trade Narrows, CAD under pressure

Canada’s Mar international merchandise trade:

  • Trade Balance: -C$3.2B vs. -C$2.4Be
  • 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$3.21B. Market expectations were for a -C$2.4B deficit. The previous month’s trade deficit was revised higher, to -C$3.42B, 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.

    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.

    Dean Popplewell

    Dean Popplewell

    Vice-President of Market Analysis at MarketPulse
    Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
    Dean Popplewell