Trade Desk Thoughts: Canada's trade deficit widened to a record as demand for cars dried up.

In Canadian dollars, the deficit rose to $933 million, Statistics Canada said. December's deficit was revised to $652 million. The deficit in December was Canada's first since 1976.

Canada's trade surplus with the U.S. narrowed to $2.98 billion, the lowest since June 1998.

Auto exports dropped 35% to $3 billion, the lowest since 1992, and the industry's imports fell 23% to $3.9 billion.

Overall exports fell 9$ to $31.7 billion, the lowest level since August 2003. Imports fell 7.9% to $32.7 billion. Shipments of machinery and equipment contributed to January's drop in both exports and imports.

Forex Technical Reaction: The cad (USD/CAD) fell sharply on Thursday as crude gained over 10% on the day. The pair declined after the trade report was released.