Canadian dollar hits six-day low after ‘soft’ trade data

Canada’s trade deficit unexpectedly widened in January, and a broad-based U.S. dollar rally pushed the Canadian dollar to a near one-week low versus the U.S. dollar. The combination of weaker trade fundamentals and USD strength is likely to weigh modestly on the CAD in the near term.

Analysis

Canada’s trade deficit unexpectedly widened in January, and a broad-based U.S. dollar rally pushed the Canadian dollar to a near one-week low versus the U.S. dollar. The combination of weaker trade fundamentals and USD strength is likely to weigh modestly on the CAD in the near term.