Canadian merchandise trade deficit likely to have narrowed in January

Canadian merchandise trade deficit is likely to have narrowed in January. According to a TD Economics research report, trade deficit is expected to have narrowed to CAD 3 billion, owing to higher export and import activity.

Energy is expected to have provided the driving force behind export growth though upside risks to non-energy exports are also seen on a sharp rise in motor vehicle production, which continues to normalize after transitory disruptions.

“Imports should see a more tepid pace of growth on the slowdown in consumer spending, though aircraft imports should rebound on Boeing deliveries”, added TD Economics.

At 21:00 GMT the FxWirePro's Hourly Strength Index of Canadian Dollar was neutral at 4.6344, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at -34.1234. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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