Canada: Merchandise trade deficit likely to widen in October – TDS

Analysts at TD Securities are looking for the Canada’s merchandise trade deficit to widen to $2.0bn in October from $0.98bn (market: -$1.4bn).

Key Quotes

“It will likely be reflecting a large drop in motor vehicle exports after the US GM strike led to a parts shortage across Canadian auto plants. This will contribute to a broader pullback in export activity while a modest decline in imports will provide a partial offset.”

“At 7:45 ET, we will hear from BoC Deputy Governor Tim Lane who will deliver an economic progress report following Wednesday's decision. Lane's speech will include an audience Q&A, with an official press conference scheduled to follow at 9:20 ET.”