Important Trade and Currency Fluctuations

Dilas International Customs Brokers pays close attention to the global economy and the rise and fall of Canadian and American currency, since it is so vital to our business. Every Customs broker at Dilas is given the resources to follow any currency and trade fluctuations as it is happening. We also understand that this information is important to our clients’ businesses, which is why we are happy to share any important currency fluctuations or trade information on our website.

The Canadian Dollar

The Canadian dollar is currently falling and it closed just below 95 cents on Thursday. Compared to the U.S. dollar, the loonie dropped down 0.41 of a cent to 94.96 cents. This was the lowest closing level since July 8. Canada’s economic growth reports for the second quarter are expected to come out sometime today and may result in further currency fluctuations.

Canadian Trade Balance

Statistics Canada reported on Thursday that the country’s current account deficit rose in the second quarter from $1.1 billion to $14.6 billion. It states that the change was the result of a greater deficit for trade in goods, which was largely reflected in the trade balance. Although imports increased, the deficit for trade in goods grew in the second quarter from $1.1 billion to $3.1 billion.

The American Dollar

The American currency strengthened with information that showed a stronger than expected economic growth for the second quarter. U.S. gross domestic product grew at an annualized rate of 2.5 per cent, which was significantly better than the 2.2 per cent that most economists predicted and the original estimate of 1.7 per cent.

Strike Against Syria

Earlier this week, the prospect of intervention in the country’s civil war shook trade markets. Many economists and trade professionals feared that any participation in Syria could drastically affect the vulnerable global economic recovery efforts.

United States President Barack Obama recently implied that he has not decided whether or not he will support a military strike against Syria. The British government also decided to hold off on a vote to authorize their involvement in a strike until U.N. inspectors can disclose their findings regarding the chemical attack in the Damascus suburbs. This report is expected within the week. President Bashar Assad’s government is currently being blamed for the chemical attack.

Global Trade Economy

Oil prices decreased after rising up to around $4 in the two previous sessions because of concerns there may be a disruption in the supply. The October contract fell $1.30 to $108.80 (U.S.) a barrel on the New York Mercantile Exchange. Crude also felt the impact of reports released on Wednesday, which showed a severe build-up in last week’s inventories. December copper slipped down $0.05 to $3.26 a pound and the December bullion contract dropped $5.90 down to $1,412.90 per ounce.

Gold prices also started to back off after significant gains earlier in the week. Commodity prices backed off as concerns about possible intervention in Syria’s civil war subsided. Late Wednesday, the U.N. Security Council’s members were unable to agree on a proposal to employ force against Syria. How this will affect the market is yet to be seen.

Dilas International Customs Brokers strives to keep their clients informed of any important changes in the global economy or currency rate. Please do not hesitate to contact any Customs broker on our team for additional information about currency and trade forecasts.