Canadian international trade deficit likely narrowed in April on weaker imports and strong energy exports

Canadian international trade data for the month of April is set to release tomorrow. According to a TD Economics research report, the international trade deficit is likely to have narrowed modestly to CAD 2.9 billion due to weaker import activity and stronger energy exports, partially countered by a pullback in non-energy exports.

Motor vehicles are the main culprit to the later after a major automaker idled production for two weeks in April, and a sharp fall in preliminary U.S. imports implies a considerable impact on auto exports. Energy productions might provide an important offset on higher prices alongside further rebound in crude export volumes that bottomed in February.

“On the other side of the ledge, imports should pare gains after the 2.5 percent increase in March, led by a pullback in aircraft imports”, added TD Economics.

At 14:00 GMT the FxWirePro's Hourly Strength Index of Canadian Dollar was bearish at -84.7793 while the FxWirePro's Hourly Strength Index of US Dollar was highly bearish at -154.936 more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex