Canada prints upbeat trade deficit, Bull swings intensify as Loonie spikes

Canada posts better than expected trade data for July month, trade deficit contracted to -2.5B from the previous 3.6B and forecasts were at 3.2B. 

Canada's merchandise trade gap was recorded at CAD 2.95 billion in July 2016 compared to downwardly revised CAD 3.97 billion gap in a month earlier, better than the market consensus of CAD 3.25 billion gap. It was the smallest gap in four months as exports rose 3.4 pct while imports edged down 0.1 pct. 

Last time, Canadian trade deficit flashed in at CAD 3.63 billion in June 2016 compared to a revised CAD 3.50 billion gap in the previous month, missing market consensus. It was the biggest deficit on record, as exports rose 0.6 pct while imports advanced at a faster 0.8 pct.

After today's announcement of Canadian posts better than expected trade data (MoM), CAD dollar exchange rate has been bullish especially against currency peers such as the JPY, AUD, USD, and EUR.

On the contrary, Lonnie may gain owing only to consolidating oil prices and gold costs had previously counteracted the Canadian Current Account flop, leaving Canadian exchange rates static.

EURCAD dragged below from previous 0.8437 to the current 0.8366 levels (almost 0.84%), AUDCAD tumbled from the previous close about 0.42% to trade the current 0.9849 levels. USDCAD dipped around 78 pips to trade at the current 1.3027 levels.