Canada's merchandise trade report massively missed expectations (-3.0bn vs est. -0.8bn) with the deficit wideningto a record in March, and the Feb deficit revised much wider as well (to -2.2bn from 1.0bn).
In volume terms, the picture was not much better, with an export gain of 1.5% in March only partly unwinding a large revision in Feb to -4.2% (was - 3.0%).
Import volumes were up 1.8% from a revised 2.5% drop in Feb (was -1.7%). A clear driver in this report was softer energy prices, and volumes are still slightly up in Q1 (now expected to add 0.2ppt vs 0.5ppt prior).
A larger inventory build leaves the economists still projecting flat growth for the quarter. There were no FX implications from BoC Dep.
Gov. Wilkins' speech on "Liquid Markets for a Solid Economy", which was essentially a summary of earlier released public consultation papers on the framework for financial market operations and emergency lending assistance policies.
(Source:
http://fxwire.pro/Canadas-merchandise-trade-report-massively-missed-expectations-32698)
