After gaining yesterday in the wake of rising commodities, slowing US manufacturing and improving Chinese PMI, the Canadian Dollar declined during local trade following the publication of domestic trade data.
The Canadian Dollar Exchange Rate was in the region of 0.9696 against the US Dollar as of 14:30 GMT
According to the report compiled by Statistics Canada, the commodity-driven nation’s merchandise trade deficit widened in April.
April’s deficit of 567 million Canadian Dollars followed the 3 million Dollar shortfall recorded in March, which was negatively revised from an originally reported 24 million Dollar surplus.
Exports fell by 0.2 per cent, dropping for the first time in five months, and imports rose to a record after gaining by 1.2 per cent, ensuring that Canada reported a deficit for the 16th consecutive month – the nation’s longest run of deficits in 25 years.
Energy dipped by 1.7 per cent.
Canadian Dollar posted a modest decline against the US Dollar
After the report was published the ‘Loonie’ posted a modest decline against the US Dollar. Yesterday the Canadian Dollar posted its biggest daily advance against its US counterpart for a year after climbing by 1.1 per cent.
According to currency strategist Jane Foley, ‘This is just a rebound. The market is now really on the cusp of trying to decide whether the Fed is going to taper soon or whether it’s not. Our view is that the Fed probably won’t taper until later in the year, meaning the market probably is overexcited and probably has gotten ahead of itself.’
In other North American news, the US trade deficit widened by less than expected in April as imports of consumer goods experienced a rebound.
One industry expert said of the news: ‘The details of this report offer an encouraging take on both US and global economic activity at the start of the quarter’.
US exports increased by 1.2 per cent, taking the figure to the second highest recorded.
Current Canadian Dollar (CAD) Exchange Rates
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The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9696 <
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7418 <
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6340 <
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0031 >
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.2097 <
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.5769 >
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0315 >
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3484 >
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8298 <
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9971 <
(Correct as of 14:30 GMT)
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