The trade balance data from both the United States and Canada this morning is beginning to confirm fears that investors are turning away from North American goods and services. The trade balance measures the difference between imports and exports and tends to generate a direct impact on currency strengths due to its direct correlation with currency demand.
Canada's trade deficit grew 1.6B this past month, as the spike in oil prices through July dragged on the country's exporting ability. The housing surge in Canada could eventually offset this data as more investors turn up for Canadian assets, but for now the nation appears a little worse for wear. The US trade balance revealed an even deeper gap. The deficit there rose 53.1B when it was forecast by economists to increase by only 47.9B. What impact this will have on the embattled US dollar ( USD ) is not yet known.
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