View: Canadian Trade Balance January 2015

Canadian Trade Balance January 2015

Dollar Depreciation Canada Edition - 4 of the last 6 months of Canadian trade balances have been negative. 

Big media has been spinning the low CAD as a net positive for Canada. But it's not working out and probably explains in part the sudden decision by the Bank of Canada in cutting its key lending rate another 25 beeps on January 21, 2015, depressing the CAD/USD even further, but: "There is considerable uncertainty about the speed with which this sequence (increased foreign demand, stronger exports, improved business confidence, investment and employment growth) will evolve and how it will be affected by the drop in oil prices. Canada’s weaker terms of trade will have an adverse impact on incomes and wealth, reducing domestic demand growth." (Bank of Canada) More charts on this at www.chpc.biz

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