Canadian Dollar and Business Outlook: Trade deficit pushes loonie downward

By MarketsFarm

WINNIPEG, March 27 (MarketsFarm) – The Canadian dollar was weaker Wednesday morning on news the country’s trade deficit remains well over C$4 billion.

At 8:46 CDT Wednesday morning the Canadian dollar was at US$0.7457 or C$1.3409, which compares with Tuesday’s North American close of US$0.7470 or C$1.3386.

Canada’s merchandise trade deficit shrunk in January when crude oil prices rebounded. The trade deficit was at C$4.3 billion, down from December’s record gap of C$4.8 billion, according to a Statistics Canada report. Until then Canada never recorded a trade deficit more than C$4 billion.

The TSX/S&P Composite Index was up 24.36 points Wednesday morning at 16,179.52 points.

Benchmark crude oil prices were up slightly Wednesday morning on reports a tightening global supply due to OPEC production cutbacks and United States sanctions on Venezuela and Iran. Gains were tempered by increases in U.S. oil inventories.

West Texas Intermediate crude oil was up six cents at US$60.00 per barrel Wednesday morning. Brent crude oil was up 13 cents per barrel to US$68.10 per barrel.

Trade talks between the U.S. and China get underway Thursday and will continue Friday. Next week, the Chinese delegation, to be led by Vice-Premier Liu He, will travel to Washington for further negotiations. There have been indications that a deal might include a gradual decline in tariffs both countries imposed on each other rather than an immediate end.

Gold was up 90 cents Wednesday morning at US$1,315.90 per ounce.


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