- Before was +2.66B (revised to 3.08B)
- Exports $63.63 billion vs $61.76 billion expected ($59.84 billion previously)
- Imports of $61.14 billion vs. $58.11 billion expected ($56.76 billion previously)
- Canada’s surplus with the United States reaches a record $12.6 billion from $10.9 billion previously
It is a better report for BODY
BODY
The Canadian dollar (CAD) is the official currency of Canada and, at the time of writing, is the fifth most widely held reserve currency in the world behind the US dollar, euro, Japanese yen and British pound. . The CAD is commonly referred to as the Loonie by forex analysts and traders. As of this writing, the CAD represents 2% of all global currency reserves. Its appeal is strong with central banking authorities given Canada’s economic strength, sovereignty and historical stability. Originally introduced in 1858, the CAD has since its inception maintained a close link to the US dollar. This is due to the high degree of trade between the two countries, with the United States receiving the vast majority of Canadian exports, and Canada in turn importing more than half of its goods from its southern neighbour. For brief periods, the CAD has been pegged to the US dollar throughout its history. Currently, the Bank of Canada (BoC) is responsible for intervening to maintain the value of the currency. The value of the CAD is highly correlated to the strength of global commodity prices such as oil. As a producer and exporter of oil and other commodities, Canada benefits from rising crude oil prices. When commodity prices rise, Canada’s terms of trade also generally improve, and vice versa. Additionally, a number of domestic factors can also influence the CAD. This includes interest rates set by the Bank of Canada, national inflation rates, trade surpluses, foreign investment and direct payments.
The Canadian dollar (CAD) is the official currency of Canada and, at the time of writing, is the fifth most widely held reserve currency in the world behind the US dollar, euro, Japanese yen and British pound. . The CAD is commonly referred to as the Loonie by forex analysts and traders. As of this writing, the CAD represents 2% of all global currency reserves. Its appeal is strong with central banking authorities given Canada’s economic strength, sovereignty and historical stability. Originally introduced in 1858, the CAD has since its inception maintained a close link to the US dollar. This is due to the high degree of trade between the two countries, with the United States receiving the vast majority of Canadian exports, and Canada in turn importing more than half of its goods from its southern neighbour. For brief periods, the CAD has been pegged to the US dollar throughout its history. Currently, the Bank of Canada (BoC) is responsible for intervening to maintain the value of the currency. The value of the CAD is highly correlated to the strength of global commodity prices such as oil. As a producer and exporter of oil and other commodities, Canada benefits from rising crude oil prices. When commodity prices rise, Canada’s terms of trade also generally improve, and vice versa. Additionally, a number of domestic factors can also influence the CAD. This includes interest rates set by the Bank of Canada, national inflation rates, trade surpluses, foreign investment and direct payments.
Read this term as the title suggests. This jump in exports is sustainable as long as commodity prices remain high. There was a surprise increase in oil imports into Canada and suggestions that Canadian refineries on the east coast were stockpiling crude from the Middle East and Africa. Consumer goods were also strong on the import side at +6.5%, a sign of either stockpiling or strong consumption. It could also be variance in a streak that has been uneven.
I wouldn’t be surprised if Canada eventually hits trade surpluses of +6-8 billion at some point in this decade. If that happens, the loonie will have to make significant gains.
