Prime News: Canadian dollar softens on larger than projected trade deficit

The Canadian dollar devitalized versus the US dollar Wednesday on greater than anticipated trade deficit in April.

According to Statistics Canada, imports dropped 2.5%, while imports slipped 0.7% last month. Trade deficit was CS$2.97 billion from C$3.85 billion in March.

The loonie finished at 80.30 US cents from Tuesday’s 80.59 US cents.

We have not noticed the recuperation in non-energy exports like BOC Governor Stephen Poloz “and the Bank of Canada would like,” said Scott Smith, senior market analyst at Cambridge Global Payments.

Poloz awaited a pick up in non-energy exports to help the economy recover momentum, but last week’s figures showed the Canadian economy constricted in the 1st quarter.

Meanwhile, markets will await the May employment data from Canada and the United States.

The material has been provided by InstaForex Company – www.instaforex.com

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