http://www.theglobeandmail.com/report-on-business/economy/canada-plunges-to-unexpected-trade-deficit/article20907500/
“The Canadian dollar suffered one of its biggest one-day losses of the year, down eight-tenths of a cent to 88.80 cents (U.S.) on Friday, after Statistics Canada reported a surprise trade deficit of $610-million in August, a far cry from the $1.6-billion surplus economists had expected.”
That was the headline for one of Friday’s Globe and Mail’s top national economic story. After a dismal August in terms of a negative trade report, economists were forced cut economic growth estimates when faced with the news that gross domestic product growth stalled in July. While Canada is struggling, the US is showing signs of recover, unemployment being at a 6 year low of 5.9%, as well as the Federal reserve raising its interest rates sooner than expected. While the month of August was a disappointment, it is only a small smudge in Canada’s hot record, showing a positive trend regardless. Improving domestic demand would spark plug the economy in my opinion, and I feel the dollar decline and trade worry is just a overreaction in terms of the market. Interestingly enough, Canada is have its share of problems while the US is recovering in some regards. A continued analysis and market watch is a must; lets see if Canada can shake off its August slip.