The Canadian Dollar ticked higher against the Pound on Thursday after it found support from the publication of a better than forecast trade balance report.
According to the report published by Statistics Canada, the nation’s trade deficit narrowed in May to $152 million. The fall was a sharp one compared to the previous month’s figure of $961 million. Today’s figure was the second highest in terms of value on record and was supported by exports climbing by 4.2% $44.2 billion. Imports also rose to $44.3 billion with the volume of goods brought into the country also climbing by 4.2%.
Canada has only recorded three trade surpluses since the beginning of 2012, highlighting Bank of Canada Governor Stephen Poloz’s disappointment with the export figures he says are needed to complete an economic recovery.
Statistics Canada said that the a fourth monthly rise in automobile and parts exports and the fact that some factory’s came back online following maintenance shutdowns were the main causes for the narrowing of the trade deficit.
Against its US counterpart the ‘Loonie’ retreated to a session low after the ‘Greenback’ found support from data which showed stronger-than-expected job growth in the world’s largest economy. The non-farm payrolls report offset the gains achieved by the trade deficit data.
Investors will be keeping an eye on the potential impact of the year’s first Atlantic hurricane. The storm dubbed Arthur is heading towards Canada’s Atlantic coastline. The storm is expected to gain in strength as it heads up the eastern side of the USA.
Oil prices too are having an impact upon the Canadian currency. The conflicts in Iraq and Ukraine have sent Canada’s biggest exported commodity higher in price, aiding the currency. A dip in prices is likely to weigh upon the ‘Loonie’.
Canada’s own employment data will be released on July 11.
Canadian Dollar (CAD) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Canadian Dollar,
,Pound Sterling,0.5462 ,
Canadian Dollar,,US Dollar,0.9366 ,
Canadian Dollar,,Euro,0.6881 ,
Canadian Dollar,,Australian Dollar,1.0033,
Canadian Dollar,,New Zealand Dollar,1.0698 ,
US Dollar,,Canadian Dollar,1.0677 ,
Pound Sterling,,Canadian Dollar,1.8309 ,
Euro,,Canadian Dollar,1.4531 ,
Australian Dollar,,Canadian Dollar,0.9964 ,
New Zealand Dollar,,Canadian Dollar,0.9332 ,
[/table]
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