CAD Trade Balance 1.1B, Expected 0.5B, Previous 0.1B

Release Explanation: A country’s exports minus its imports; the largest component of a country’s balance of payments. An increase or decrease in the Trade Balance will help determine the future economic outlook and growth numbers in a region. It can impact all aspects of an economy as it is the way that region balances its books.
This is a standalone valuation of the reliance, or not, of imported Goods compared to what is being sent abroad. A currency will be greatly impacted by this report as the costs of buying Imports, or selling Exports, is reliant upon a currency’s valuation to a degree. A country that Exports more than it Imports (China for example) will benefit from a weaker currency; its Exports are cheaper for foreigners to buy, and vice verse.

Trade Desk Thoughts: Canada's trade balance came in at 1.1B, a higher surplus than expected, Statistics Canada said today. Exports and imports both fell largely due to volume reductions. Imports declined more than twice as much as exports.
Exports dropped 1.8% to $32.5 billion, largely reflecting a decline in exports to the U.S.. Increased exports to Europe moderated the decline.
Imports fell 4.4% to $31.4 billion as most sectors posted declines. Energy products posted the largest decline, followed by machinery and equipment as well as industrial goods and materials.

Forex Technical Reaction: The cad dropped immediately after the release as the U.S. trade deficit posted a larger deficit than expected. The pair has lost 120 pips since the start of the Asian session and looks set to erase all of yesterday’s gains.