The Canadian dollar slid today as the report that the Canadian trade balance deficit unexpectedly widened outweighed the increase of crude oil prices.
Canada’s trade balance deficit increased to C$924 million in April from C$417 million in March, while analysts expected a surplus of C$400 million. The New Housing Price Index rose 0.3 percent in April, compared to the market expectation of a 0.6 percent growth. Analysts estimated, before the report from Statistics Canada today, that Canadian employment added 21,800 jobs in May, down from 58,300 working places in April.
The Canadian dollar rose earlier as there were some positive fundamentals for the currency. July futures for crude oil delivery rose 1 percent to $101.79 per barrel in New York, following the advance to $102.44, the highest price since June 1. The trade balance deficit of the US, major Canada’s trading partner, unexpectedly decline to $43.7 billion in April from $46.8 billion in March.
USD/CAD rose to 0.9751 from 0.9727 as of 4:52 GMT today. EUR/CAD advanced to 1.4131 from 1.4114, following the rise to 1.4174. CAD/JPY retreated to 82.08 from 82.53.
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