Canadian Dollar Near High as Trade Hopes Climb

The Canadian dollar rose to a near one-week high against its U.S. counterpart on Tuesday as data showed a narrowing in Canada’s trade deficit and investors became more optimistic of a trade deal between the United States and China

by Cam Patterson

This comes on the heels of newly re-elected Prime Minister Trudeau reorganizing his plan with a minority government, yet high on his list of priorities is getting the new NAFTA ( whatever that name is to become ) back on the table. Chrystia Freeland is set to sit down with her U.S. counterparts in the coming months.

“Chinese hog herds have suffered due to the African Swine Flu pandemic, which no doubt influenced China’s decision to lift the ban on Canadian beef and pork”

 

Yet, several more immediate trade turnarounds might have had more to do with the Canadian dollar hitting its strongest intraday level of 1.3116. World shares climbed back towards record highs as hopes that Washington may roll back some of the tariffs it has imposed on Chinese imports rekindled optimism about the global economic outlook.

That combined with the near catastrophic losses Chinese hog herds have suffered due to the African Swine Flu pandemic, which no doubt influenced China’s decision to lift the ban on Canadian beef and pork – which resulted in a resounding $400 million in meat trade losses this fiscal – have contributed to the dollar’s surge.

Subsequently, Canada’s trade deficit narrowed in September to C$978 million, compared with a revised August deficit of C$1.24 billion, as exports and imports declined, data from Statistics Canada showed.

Regardless, with exports resuming, and NAFTA negotiations at the very least are being penciled into negotiator’s day planners, this could spell an optimistic turnaround for Canada’s meat industry trade prospects in the new year.

Cam Patterson with reporting by Fergal Smith and Paul Simao