The Canadian dollar rebounded from the lowest level in four weeks after the nation’s trade balance posted an unexpected surplus in September, improving sentiment about Canada’s economy and increasing appeal of the Canadian currency.
Canada’s merchandise exports grew 4.2 percent, while imports decreased 0.3 percent, resulting in trade balance surplus of $1.2 billion in September. Most analysts expected Canada’s trade balance deficit to stay near its previous level of $487 million in August and nobody expected a surplus. Trade balance in the USA, the biggest trading partner of Canada, also improved as the deficit unexpectedly shrank to $43.1 billion in September down from the revised August reading of $44.9 billion.
Futures on crude oil, the main export of Canada, rose 2 percent to $97.61 per barrel in New York. Earlier, stock, commodity and currency markets were shaken as Standard and Poor’s sent message that France’s credit rating was downgraded and later explained that was a mistake.
USD/CAD was today at 1.0189 as of 1:42 GMT after falling yesterday from 1.0239 to 1.0170. EUR/CAD traded near 1.3844, following the drop from 1.3865 to 1.3839 on the previous trading session. CAD/JPY traded at about 76.12 after rising from 75.94 to 76.30 yesterday.
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