Canadian international trade deficit likely to have narrowed in April

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 expected to have narrowed to CAD 3.4 billion from CAD 4.1 billion in April, reflecting a pullback in imports after last month’s blockbuster report. Exports are likely to have changed little as strength in energy products counters a fall in aerospace, which added near a full percentage point to March export growth, and subdued auto exports as presaged by advance U.S. trade data.

Meanwhile, imports are likely to have come under pressure as a number of outsized moves unwind. Motor vehicles and consumer goods are both prime candidates after they combined to contribute 3.2 percent to the advance March imports.

“Looking ahead, we expect trade to make a positive contribution to GDP growth in Q2 after three quarters as a headwind to domestic demand”, added TD Economics.

At 21:00 GMT the FxWirePro's Hourly Strength Index of Canadian Dollar was slightly bearish at -61.7418, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at 50.1275. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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