- Benjamin Reitzes, BMO Capital Markets senior economist
The Canadian Dollar was lower on Thursday on declining commodity prices and better than expected current account data. The Loonie traded at 88.92 US cents as Statistics Canada reported that the nation's current account deficit was the narrowest since 2008 in the third quarter. The deficit shrank to $8.4 billion in the three months through September compared with the previous quarter's revised figure of a $9.9 deficit. The report revealed an ongoing recovery in the Canadian export sector. The balance of international trade surged to $2.9 billion, recording a third consecutive surplus. Total exports rose to the highest dollar value on record, reaching $135 billion, with the largest increase reported in metal and non-metallic mineral products. Imports also soared to $132 billion. Bank of Canada Governor Stephen Poloz said sustained gains in exports and business investment must lead the economy back to full capacity over the next two years.
Markets will also get data this week on how the overall Canadian economy is performing. Statistics Canada is due to release its reading on monthly as well as quarterly gross domestic product on Friday. Analysts expect that the agency will report that Canada's economic output grew by 0.4% during the month after falling 0.1% in August, adding up to an annualized growth rate of 2.1%.
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