Canada trade preview
Canada trade preview: the trade deficit, due Friday, is projected to narrow to -C$1.3 B in November from -C$1.5 B in October. Trade saw a welcome improvement in October, as exports jumped 2.7% after falling from June to September (on a monthly basis). Exports are seen rising 1.0% m/m in November after surging 2.7% in October. Imports are expected to rise 0.5% m/m in November after the 1.6% drop in October. Trade has been dismal in the second half of this year, with the exception of October. Crude oil prices were firmer in November, which should lift export values in November, while volumes could rise amid increasing demand. And the loonie was again weaker against the U.S. dollar in November. The Canadian dollar had appreciating from May through September (it was weaker in October). A gain in exports, even if growth is rather modest, would be a breath of fresh air for this key sector of Canada's economy. Such a result would be supportive of the no-hike-in-January but rate increase in March scenario. View the full preview.