Some businesses in Canada are beginning to recover slightly.

The Canadian dollar is beginning to strengthen once again, but the overall economic situation in Canada is still challenging. Additionally, there are predictions that the GDP in the past quarter grew at 0%, similar to the second quarter, despite an increase in exports. Furthermore, cost pressures resulting from rising interest rates have increased overall company expenses, and there has also been a reduction in consumer spending in the household sector.

The Canadian government's budget deficit has increased to 4.86 billion Canadian dollars, with income rising by 0.4%, while expenses increased by 1.2%. Moreover, the recent interest rate hikes have contributed to a 29.9% increase in public debt expenses, potentially leading to long-term issues when combined with ongoing budget deficits.

Canada's trade balance remains in deficit, amounting to 0.72 billion Canadian dollars in August. This marks a continuous trade deficit since April, despite an increase in imports, particularly of chemicals from Switzerland, as well as machinery and equipment for production.

Canadian exports have increased by 5.7% on a month-on-month basis, totaling 64.6 billion Canadian dollars. The majority of exports still consist of various metals, including unprocessed gold, silver, and platinum, which saw an 89.5% increase in exports, reaching a record-breaking 8.5 billion dollars. Additionally, the value of energy exports, including crude oil, has significantly risen.

The manufacturing sector's Purchasing Managers' Index (PMI) has dropped to 47.5, indicating that the higher interest rates from the Bank of Canada are having a more significant impact in the third quarter, leading to a rapid contraction in new purchases, both domestically and internationally. This has increased production costs and put pressure on various activities, potentially resulting in job cuts.

The unemployment rate remains at 5.5% in August, with an additional 8.1 thousand people unemployed, totaling 1.189 million people. This suggests a continued labor market slowdown since the previous year, with unemployment rates still below pre-Covid-19 levels, indicating a sluggish economy.

Techical analysis data (5H)

Resistance: 1.3593, 1.3606, 1.3613

Support: 1.3573, 1.3566, 1.3553

Source: Investing.com