Today’s Canadian trade data continues to reiterate that the Bank of Canada may right on its call for a stronger Canadian economy. The country ran a rare trade surplus on $762 million in May. It’s only the fourth surplus for the country since oil prices began declining in 2014, driven by a 4.6 per cent increase in exports. Also, of note is that the U.S. trade gap increased, whether Trump will see that gap as a negative towards Canada’s gain, remains to be seen.
Expect the Canadian dollar to follow oil which is up slightly due to lower inventory numbers, however Saudi’s Aramco is poised to issue one of the largest IPOs in history, expect prices to remain the same or higher in the short term.
Currently Close Range
USDCAD 1.3070 1.3108 1.3064-1.3119
EURCAD 1.4734 1.4790 1.4735-1.4804
GBPCAD 1.6420 1.6505 1.6416-1.6512
CA: Merchandise Trade May $-1.0B $0.8B
US: International Trade May $-51.2B $-55.5B
Jobless Claims wk6/29 229K 221K
Petroleum Status Report wk6/28
Crude Oil -12.8 M Brls -1.1M Brls
Gasoline -1.0M Brls -1.6M Brls
Factory Orders May -1.2% -0.7%