Canadian goods trade deficit likely to have narrowed in September – TD Economics

The Canadian goods trade deficit is expected to have narrowed in September. According to a TD Economics research report, goods trade deficit is likely to have narrowed to CAD 3 billion, reflecting a moderate recovery in export activity while imports are expected to have seen little change.

Exports are expected to have gained from a recovery in auto production while vehicle replacement in Texas and Florida are likely to have added to foreign demand. The hurricane distortion in energy products is unclear but a rise in petroleum exports is likely to have countered the demand from Gulf refineries. But currency appreciation would continue to pose a risk. This would cap off a very weak quarter for Canada’s exports after the weak handoff in June and a sharp decline in July. Even after a moderate rebound in September, trade is expected to act as a sizeable headwind to growth in the third quarter, stated TD Economics.

At 20:00 GMT the FxWirePro's Hourly Strength Index of Canadian Dollar was neutral at 10.3492, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at -21.8554. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest