By Commodity News Service Canada
Winnipeg, July 5 (CNS Canada) – The Canadian dollar is trading slightly higher this morning, despite the release of Canada’s international trade balance, which was worse than expected. However, building permits were higher than expected. The loonie was up .12 cents U.S. at 77.29, or C$1.2938 per US$1. It closed yesterday at 77.03 or C$1.2982 per US$1.
Analysts polled by Reuters say the Canadian dollar is expected to decline over the coming months. The news agency polled 47 foreign exchange analysts and the consensus was that the dollar’s recent rally would fizzle, as lower oil prices and waning expectations for higher interest rates are expected to drag down values. The median forecast is for the Canadian dollar to fall to C$1.32 per US$1 in three months.
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Statistics Canada reported that Canada’s merchandise trade deficit reached C$1.1 billion in May, up from C$552 million in April. StatsCan also reported that May building permits were up 8.9 per cent from April at C$7.7 billion, the third highest value ever recorded. The increase was attributed to higher construction intentions for residential buildings, especially Ontario. Alberta was a distant second, followed by British Columbia.
WTI crude oil is trading at US$45.92 per barrel, a gain of 79 cents or 1.75 per cent.
The S&P/TSX is down 67.04 points this morning at 15,086.08 for a decline of .44 per cent. The major exchanges in New York were also down on early trading.
