The Canadian Dollar weakened significantly against the US Dollar on account of data showing unexpectedly widened Canadian trade deficit. Following the report, the USD/CAD jumped by 62 base points or 0.49% to 1.2540, the strongest rate since August 31.
Statistics Canada revealed that the country’s trade deficit widened more than anticipated to the 3.4B in the month of August, missing forecasts for a lower deficit of 2.6B. Weak report raised hopes that the Bank of Canada is unlikely to raise key interest rates one more time this year. Meanwhile, a separate report on the US trade balance revealed a 42.4B deficit versus 42.7B expected in the same period, providing additional support for the Greenback.
