Canada’s international goods trade deficit likely widened in April, says TD Economics

Canada’s international goods trade deficit is likely to have broadened in April from March’s deficit. According to a TD Economics research report, the deficit is expected to have widened from $34 million to $500 million in April as a modest rise in exports would be offset by a greater rise in imports. Exports of energy are expected to have recorded a small rise on a nominal basis; however, there is scope for volumes to drop because of a fire at a Syncrude facility in the oil stands that decreased shipments until May, noted TD Economics.

Meanwhile, non-energy exports are expected to have recorded a slight rise mainly because of a weaker Canadian dollar and increased factory prices, though there is a threat of a decline after prior month’s large gain. The implementation of new tariffs on softwood lumber is unlikely to have had a huge impact because of the timing of the announcement that will push most of the impact into May.

“Imports should post a more moderate advance due primarily to exchange rate effects and continued strength in Canadian household spending”, added TD Economics.

At 22:00 GMT the FxWirePro's Hourly Strength Index of Canadian Dollar was bullish at 73.9787, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at 43.1375. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex