Canada’s trade deficit likely to have narrowed in June

Canadian international trade data is set to be released tomorrow. According to a TD Economics research report, the trade deficit is likely to have narrowed in the month to June to CAD 2.4 billion, with both exports and imports higher on the month.

A recovery in motor vehicles is expected to have driven export growth though metals might provide a partial offset due to the recently introduced steel and aluminium tariffs, which impact about CAD 1.5 billion in exports per month.

Energy exports would also be impacted by another shutdown in the oil sands, though this would have a greater effect in July.

“On the other side of the ledger, imports should benefit from a rebound in retail activity and auto production, after disruptions at a major parts supplier weighed on the latter in May”, added TD Economics.

At 21:00 GMT the FxWirePro's Hourly Strength Index of Canadian Dollar was slightly bearish at 69.3377, while the FxWirePro's Hourly Strength Index of US Dollar was highly bullish at 102.221. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex