Canadian trade deficit likely to have widened in July

Canadian international merchandise trade data for the month of July is set to be released. According to a TD Economics research report, the trade deficit is likely to have widened in July to CAD 1 billion, giving back some of the previous months’ narrowing as imports recover.

Exports are likely to have recorded little change as a pullback in crude oil shipments, caused by shutdowns in the oil sands, counters stronger non-energy exports. Motor vehicles are the main driver for the non-energy component as presaged by a rebound in U.S. imports.

“On the other side of the equation, imports will see a drag from retaliatory tariffs on steel, aluminum and a broad range of consumer goods, resulting in only a modest increase for the month”, added TD Economics.

At 13:00 GMT the FxWirePro's Hourly Strength Index of Canadian Dollar was bearish at -78.828, while the FxWirePro's Hourly Strength Index of US Dollar was highly bullish at 110.505. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex