Canadian Trade Balance Data Due | UK Services PMI Beats Estimates
Published November 5, 2019
The Canadian dollar is expected to make minor advancements against the greenback, as Canada’s trade balance report is released this morning. Overall, the trade deficit is expected to narrow to $600m in September compared to the $1.2b on account of a pullback in import activity, partially offset by softer exports. At the time of writing, the Canadian dollar is trading at slightly stronger levels of 1.3126 against the US dollar.
This morning, a leading industry survey has shown a better than expected view for the UK service sector. Overall, the UK services PMI came in strong at 50.0 against the market expectation of 49.6 and prior reading of 49.5.
Thomas Barkin, President of the federal reserve bank of Richmond, noted that the economic headwinds in the US were mostly driven by uncertainty on trade and politics. Barkin acknowledged that risks to the US economy are still tilted to the downside and he is closely watching whether this year’s rate cuts have the intended effect on the US economy.
US and Chinese officials are actively considering rolling back some tariffs to clinch the partial trade deal under negotiation, people familiar with the negotiations said on Monday. The deal, which may be signed this month between US and China is widely expected to include a US pledge to scrap tariffs, scheduled for Dec. 15 on about $156 billion worth of Chinese imports.