Trade Balance is an important indicator and it shows the difference in values of imported and exported goods during the previous month and it is closely watched by traders as exports higher than imports show a surplus, and because of that, foreigners that want to buy goods/services need to buy the currency to pay for those goods and services, hence currency market is influenced by such a release.
If actual is bigger than the forecast than this should be interpreted as positive for the currency, and if actual is lower than the forecast than this should be negative for the currency as a whole.
The most important things to take into consideration when looking at the Trade Balance economic indicator in Canada are:
- release date: monthly, about 35 days after the month ends;
- release time: 12:30 GMT, during the North American trading session;
- actual > forecast = positive for currency;
- actual < forecast = negative for currency;
- second tier data.