Trade Desk Thoughts: Canada's trade balance fell to $1.3 billion in November from $2.3 billion in October, its lowest level in more than a decade. Both exports and imports declined, driven by energy products, as crude petroleum prices continued to fall, statistics Canada said today.

Exports to the United States fell 7.4% to $28.9 billion, largely the result of a decline in energy products. The decrease in exports outpaced a 3.7% drop in imports, putting Canada's trade surplus with the United States at $4.5 billion, its lowest level since May 1999.

Exports slid for the fourth month in a row, dropping 6.8% to $39.2 billion, the result of falling prices and lower volumes. It was the lowest total for exports since January 2008. The volume of exports decreased 1.8%.

Similarly, a combination of price and volume reductions pushed Canada's imports down 4.8% to $38.0 billion. The volume of imports fell 2.3%.

Excluding energy products, exports declined 2.7% while imports increased 0.6% in November. The trade balance has been in deficit since July 2007. In November, the trade deficit expanded to $3.5 billion from $2.4 billion in October. In terms of volume, exports and imports decreased 1.2% and 0.9% respectively.

Forex Technical Reaction: The loonie looks to be heading towards a third day of losses to the dollar. Oil has now declined just over 25% since the Jan. 06 peak on $50.47.