CAD: Current account deficit projected to narrow – TDS

Research Team at TDS, expects that Canadian current account deficit to narrow to $15.6B from $16.2B.

Key Quotes

“The deficit has been trending lower since peaking in Q1 as the cheap Canadian dollar begins to flow through to the manufacturing sector and merchandise exports. January’s industrial and raw material prices round out the calendar.

Industrial product prices are expected to stay flat, lagging a 0.2% increase in consumer prices while raw material prices should continue their slide with the market calling for a 3.3% m/m decline.”