HiFX: Foreign Exchange Specialists

• Headlines

April 10, 2008

Canadian merchandise trade figures showed that the Canadian trade surplus increased well above expectations to C$4.9bn, from a downwardly revised C$2.8bn in January.  This marks the largest nominal surplus since May 2007.  Exports were up 3.8% with all gains being as a result an increase in export volumes as export prices remained flat.  The surge in exports was mainly attributed to but not limited to the 11.4% jump in the auto sector as well as energy related exports.  Despite the data being positive for the Canadian economy, FX markets did not react as traders continue holding a neutral stance ahead of G7 meetings this weekend.