Fundamental Analysis Forex
December 11, 2012 @ 9:30 pm

Canada’s exports rise in October, boosting CAD

The Canadian trade gap was smaller-than-expected in October according to Statistics Canada, helping propel the Canadian dollar to a two-month high against the US dollar. In contrast the US trade deficit widened in October.

Canada’s trade deficit narrowed to C$169 million ($171 million) in October from a revised C$1.01 billion deficit in September.

Helping reduce the gap was a surge in exports coupled with a drop in imports . Data show that exports from Canada to the rest of the world increased by 1 percent to $38.1 billion, with higher prices and volumes being a contributing factor .

Despite a decline in exports from the mining sector (including  metal ores and non-metallic minerals) a rise in exports of farm, fishing and intermediate food products helped offset those other losses.

Imports fell 1.2 per cent to C$38.28 billion, which was a 5.7 per cent decline from June when imports hit an all-time high.

The upbeat data helped boost the Canadian dollar to  a  two month high against the U.S. dollar as USDCAD fell to  the lowest since October 19. The Canadian loonie hit C$0.9858 against the U.S. greenback, or $1.0144, after trading around C$0.9863, or $1.0139, heading into the report.

In contrast to the improved Canadian trade balance, the U.S. trade deficit widened in October to $42.2 billion compared to September’s  revised $40.3 billion.

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One Response to “Canada’s exports rise in October, boosting CAD

  1. Elijah Says:

    Which is better an arm or a leg? You need both, plraerefbry both of both, but my father lost one of his and did okay without the full set but it was hard. The technicals keep you from buying or selling at stupid times, when the tide of trading is against you, it is against you and you lose. The fundamentals tell you, largely, why things may or may not go this way or that. Knowing the kinds of news and rationale behind the marketing movings explains or reinforces the technical, which is often the irrational and emotional side of the market. Just as what goes on between your ears, you have reason and passion and how you balance those makes all the difference. (BTW Forex is pretty chancy, even for accomplished traders, so be careful that you don’t bet the farm’, okay?)

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