US Trade Gap Widened to 14-Mth High

US November trade deficit rose by 9.3% to $63.12B ($59.75B shortfall expected) from October’s revised $57.77B on record oil prices, widening to the biggest gap in 14 months. October was originally reported $57.82B. Swissy fell to a 6-week low, temporarily dipping below 1.1000 (note the 3 zeroes), while EUR/USD has been trading in a tight 70-pip range. The latter has to overcome 1.4830 before it can target 1.4900, a strong resistance level. GBP has been the broad loser against other currencies like USD and JPY.

Canada December employment fell 18.7K, weaker than the consensus estimate of a 12K rise. However, it follows several months of very strong gains. The unemployment rate remained unchanged at 5.9%, in line with expectations. This weak data could weigh on the CAD as traders think the Bank of Canada may have room to cut rates on January 22.

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