By Commodity News Service Canada
WINNIPEG, July 6 (CNS Canada) The Canadian dollar weakened slightly against its US counterpart Wednesday morning with unfavourable reports on Canada’s trade deficit.
Canada’s exports fell 0.7 per cent to C$41.1 billion in May, according to Statistics Canada. Export volumes declined 2.3 per cent and prices were up 1.6 per cent. Imports decreased 0.8 per cent to C$44.4 billion, as volumes were down 0.9 per cent and prices edged up 0.2 per cent.
As a result, Canada’s merchandise trade deficit with the world in May was virtually unchanged compared with April at C$3.3 billion, falling short of expectations.
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Brexit-related fears are also seeping back into the market, weighing on the loonie.
Global markets recovered some losses stemming from the Brexit vote last week, but weak economic data and the rising risk of a recession curbed the rally.
Traders wait on the minutes of the US Federal Reserve’s June meeting to be released, hoping the comments will give clues on what the Federal Reserve thought the impact of Brexit would be. Minutes are scheduled to be released Wednesday at 1:00 p.m. CDT.
At 8:49 CDT Wednesday, the Canadian dollar was at US$0.7680 or US$=C$1.3021, which compares with Tuesday’s North American close of US$0.7683 or US$1=C$1.3016.
The TSX was down 117.76 points, or 0.83 per cent, at 8:49 CDT Wednesday morning to sit at 14,101.81.
