The Canadian Dollar weakened significantly against the US Dollar on account of data showing unexpectedly widened Canadian trade deficit. Following the report, the USD/CAD jumped by 62 base points or 0.49% to 1.2540, the strongest rate since August 31.
Statistics Canada revealed that the country's trade deficit widened more than anticipated to the 3.4B in the month of August, missing forecasts for a lower deficit of 2.6B. Weak report raised hopes that the Bank of Canada is unlikely to raise key interest rates one more time this year. Meanwhile, a separate report on the US trade balance revealed a 42.4B deficit versus 42.7B expected in the same period, providing additional support for the Greenback.
| Historical Data Table: Canadian Trade Balance | |||||
| Date | 09.06.2017 | 07.07.2017 | 04.08.2017 | 06.09.2017 | 05.10.2017 |
| Actual | -0.4B | -1.1B | -3.6B | -3.0B | -3.4B |
| Forecast | 0.0B | -0.5B | 1.3B | -3.2B | -2.6B |
| Initial Reaction on Main Pairs | |||||
| Open Price | Close Price | % Change | |||
| AUD/CAD | 0.97622 | 0.97937 | 0.32% | ||
| CAD/CHF | 0.78348 | 0.77929 | -0.53% | ||
| EUR/CAD | 1.46488 | 1.47105 | 0.42% | ||
| USD/CAD | 1.24787 | 1.25404 | 0.49% | ||