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Canada's international trade expected to slide further into deficit in June - TD Securities

FXStreet (Łódź) - Jacqui Douglas, Senior Global Strategist at TD Securities expects Canadian export growth to slow down considerably in June or even register a drop, which would result in the international trade deficit widening further in June.

Key quotes

"The auto sector will probably be the major culprit, as the 10% increase in May looks unsustainable and stalled motor vehicle assemblies in the US also point to retracement."

"We expect to see a modest increase in imports, which should be enough to push the trade balance down from -$0.2B to -$0.6B (consensus: flat)."

"Rolling a June trade deficit into the rest of the Q2 data implies that net exports will have a negligible contribution to quarterly GDP growth."

"We are currently tracking a 2.5% annualized increase for Q2, which is in line with the Bank of Canada’s most recent forecast. "

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