Canadian Trade Balance (June)

Daily Forex Fundamentals | Written by TheLFB-Forex.com | Aug 12 08 13:00 GMT |

Actual 5.8B, Expected 5.7B, Previous 5.5B

Trade Desk Thoughts: Statistics Canada said that Canada's trade surplus expanded as energy exports to the United States increased, although prices increased 4.5% and volumes declined 1.4%. Overall, export prices have been on the rise for the past eight months, while volumes have been trending downward. Imports rose 2% but movements in volume have not shown a clear trend. The decline in export volumes point to continued weakening demand, and is a further indication that the BoC may reduce borrowing costs at its September 3 meeting.

Forex Technical Reaction: USD/CAD fell about 30 pips after the release, as the dollar seems to be weakening against most major currencies. After being down over $1 in electronic trading, oil is now up 1 cent.

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