Accessibility/Mobile Features
Skip Navigation
Skip to Content
Editorial News
Business
Classified Sites

The Canadian Press - ONLINE EDITION

Loonie up: March trade surplus declines, February data sharply revised upward

Canadian dollars coins are shown with U.S dollars bills April 6, 2010 in Montreal. THE CANADIAN PRESS/Ryan Remiorz

Enlarge Image

Canadian dollars coins are shown with U.S dollars bills April 6, 2010 in Montreal. THE CANADIAN PRESS/Ryan Remiorz

TORONTO - The Canadian dollar closed at a one month high Tuesday while the latest trade data showed a much smaller than expected surplus for March. But there was a sharp revision upwards for the trade surplus racked up in the previous month.

The loonie was up 0.61 of a cent to 91.92 cents US as Statistics Canada said the surplus came in at $79 million, much smaller than the $450 million that economists had expected and down sharply from the revised surplus of $847 million from February. The February trade surplus was originally reckoned to have come in at $290 million.

Exports declined 1.4 per cent to $42.7 billion, with prices down two per cent. Energy products were the main contributor to the overall decline in exports.

The other major Canadian economic report for the week comes out Friday when Statistics Canada posts the latest reading on employment.

Economists believe the Canadian economy created about 16,000 jobs in April, down from 43,000 in March. But job creation has been volatile and has regularly missed expectations.

The dollar gained ground amid a forecast that sees slower global economic growth.

The Organization for Economic Co-operation and Development said the global economy will grow by 3.4 per cent this year, down from its forecast of 3.6 per cent growth last November.

The OECD, a think-tank for the world’s most developed countries, cut China’s growth forecast this year to 7.4 per cent from 8.2 per cent in November. Meanwhile, the U.S. economy is forecast to grow 2.6 per cent this year against last November’s 2.9 per cent estimate.

The news is better for Canada: economic growth is projected to accelerate to 2.75 per cent by 2015.

The OECD warned that "financial tensions in emerging markets are one risk that could blow the global recovery off course,” while falling inflation in the euro area was another cause for concern.

In the U.S., the trade deficit narrowed in March as exports rebounded to the second-highest level on record, led by strong gains in sales of aircraft, autos and farm goods. The deficit declined to $40.4 billion, down 3.6 per cent from a revised February imbalance of $41.9 billion, which had been the biggest trade gap in five months.

Other data showed that U.S. house prices rose at a slightly slower pace in the 12 months that ended in March, a sign that weak sales have begun to restrain the housing market’s sharp price gains.

Data provider CoreLogic says prices rose 11.1 per cent in March compared with March 2013, down a bit from February’s 12.2 per cent year-over-year increase.

On a month-to-month basis, prices in March rose 1.4 per cent from February.

On the commodity markets, June crude in New York gained two cents to US$99.50 a barrel.

July copper was unchanged at US$3.06 a pound while June gold bullion faded 70 cents to US$1,308.60.

  • Rate this Rate This Star Icon
  • This article has not yet been rated.
  • We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

    You can also register and/or login to the site and join the conversation by leaving a comment.

    Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Commentscomment icon

You can comment on most stories on brandonsun.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Commentcomment icon

Comment
  • You have characters left

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.

letters

Make text: Larger | Smaller

Brandon Sun Business Directory
Sudden Surge: Flood of 2014
Opportunity Magazine — The Bakken
Why Not Minot?
Welcome to Winnipeg

Social Media

Canadian Mortgage Rates