Canada's Trade Deficit Extends to 6th Month Amid Low Oil Prices – Potential CAD/USD Buying Opportunity

Today's expected range for the Canadian Dollar against the major currencies:

US Dollar        1.3580-1.3740

Euro                 1.4890-1.5090

Sterling            1.7800-1.8000

WTI Oil (opening level) $73.14

Yesterday we got a report from Stats Canada that the trade deficit in Canada was in a negative for 6th straight month. They suggest that because of the low oil prices we were low and exports fell then the result was a $1.1 billion goods trade deficit. Since we are an exporting country of commodities -and oil is a major part of that equation- then that explains the fall off in trade internationally. Please be aware that the price today for WTI oil is about the same as it was in mid August - from where these statistical numbers are being reported from. Considering that the price for oil was in below $70 a couple of weeks ago it is likely that that trade deficit will extend from 6 months straight months to 8 months in a row. That is historically negative for the CAD. So this may be a buying opportunity actually for the CAD /USD

I will repeat what I wrote before - my favorite chart shows a range of 1.34 to 1.38 in the next month.