"The recent uptick in Canada's international goods trade balance has helped paint a brighter picture of third quarter growth. But, much of that recovery is coming from a resumption of oil exports after the Alberta wildfires. Even after stripping out the effects of both the fires and weak oil prices, Canada's current account deficit as a percentage of GDP remains wide. It appears that the world is not enough for Canadian trade as weak global demand post-crisis continues to restrain non-energy exports.

Looking ahead, with the Fed aiming to hike rates before year-end, demand for the portfolio flows financing Canada's current account deficit could wane, showing up in the form of a weaker loonie.

Look for CAD to hit 1.35 before 2016 comes to a close".

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