USD/CAD: Canada Trade Gap Widened

USD/CAD: Canada Trade Gap Widened

For the 24 hours to 23:00 GMT on Friday, the USD rose 0.15% against the CAD to close at 0.9848. The Canadian Dollar turned lower on Friday, after official data showed that Canada’s trade deficit widened unexpectedly in November as exports fell.

Statistics Canada reported that November’s trade deficit grew to C$1.96 billion, up from C$552 million in October, the fourth largest deficit on record. Economists had forecast a deficit of C$1 billion last month. Imports rose 2.7% in November, while exports dropped 0.9% indicated the report. The data fuelled concerns that Canadian economic growth would be weaker than hoped in the fourth quarter.

In the Asian session, at GMT0400, the pair is trading at 0.9837, with the USD trading 0.11% lower from Friday’s close.

The pair is expected to find support at 0.9817, and a fall through could take it to the next support level of 0.9797. The pair is expected to find its first resistance at 0.9855, and a rise through could take it to the next resistance level of 0.9874.

The Bank of Canada business outlook survey data is likely to receive increased market attention later in the day.