GBP/CAD edges up on Wednesday, as UK Prime Minister Boris Johnson officially starts his election campaign. The pair is trading at 1.6964 as of 10:26 AM UTC, up 0.11% so far.
The British pound has been more confident since yesterday when it managed to bounce back from a downtrend that led the price to a November low of 1.6899. The Canadian currency was driven by higher oil prices amid increased hopes that the US and China will end the trade conflict and sign an interim deal.
Nevertheless, the loonie stagnated against its British counterpart after Canada posted trade data.
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Canada Trade Deficit Down to C$978M in September
Yesterday, Statistics Canada said that the country’s trade deficit narrowed to C$978 million ($745 million) in September, with both imports and exports decelerating. Analysts surveyed by Reuters expected a deficit of C$700 million for the month.
Exports dropped 1.3% in September, with seven out of 11 categories declining. Exports of metal and non-metallic mineral products were the worst performer, falling by 7.3%.
Crude oil exports declined 2.1% on lower volumes, after noting an increase in August.
Elsewhere, imports dropped by 1.7%. Imports of transportation equipment and parts tumbled 27.7% on slower trade from Belgium.
Nevertheless, the CAD hasn’t been too affected by the trade report. Andrew Grantham of CIBC Economics commented:
“While this looks like a soft report, the declines in two-way trade were anticipated and not any worse than we had feared.”
Johnson Kicks Off Election Campaign
In the UK, PM Boris Johnson launched his election campaign by pledging to handle Brexit while comparing his rival, Liber Party leader Jeremy Corbyn, to Josef Stalin.
The poll will be held on December 12 after the parliament finally approved an early election last week. As of today, analysts cannot predict the outcome of the vote, though Johnson fought for this election in a hope to consolidate the position of his Conservative Party.
The PM admitted that he didn’t want an election but was forced to seek it for the sake of getting Brexit done. Johnson explained:
“I don’t want an election. No prime minister wants an early election, especially not in December. But as things stand we simply have no choice — because it is only by getting Brexit done in the next few weeks that we can focus on all the priorities of the British people.”
