Canada's trade balance shows a deficit increase in December. At a year-end balance of foreign trade agreements was positive.
The foreign trade deficit in December rose to CAD 649 million, which is two times higher than the deficit at the end of November (CAD 335 million), stated in the Statistics of Canada. Despite the increase in the deficit, its actual value was significantly lower than expected (CAD 1.0 billion).
Import exceeded export in December. That was the main factor of deficit growth. The increase in export sales totaled to 1.5%. Sales of metals and non-metallic products showed an increase (by 13.1%) that offset the reduction in energy supply (10.3%). Import growth was 2.3%, mainly due to the increase of energy products for Canadian plants.
In 2014, imports rose to 7.6% compared with the previous year, while exports increased to 10.3%. By the end of 2014, the trade surplus reached CAD 5.17 billion, while in 2013 trade balance was negative at CAD 7.22 billion.
Weakening of the Canadian dollar still holds in the long-term trend. The USD/CAD generates an upward wave 3 / C-level Monthly2, experts of Masterforex-V claim. Feb. 7, 2015 the pair remains in subwaves 3 / C-level Weekly2, which can test the long-term maximum at 1.3063. Movement objectives possibly are Fibonacci levels at 1.2921, 1.3469. Breakdown of ascending inclined MF channel and MF pivot 1.0809 will indicate the completion of the current wave.
