Currency value appreciation: peso : Canadian dollar :: trade balance : ?

Currency value appreciation means that one currency is worth more compared to another currency. In this case, if the peso appreciates against the Canadian dollar, it means that you can buy more Canadian dollars with one peso than before. The trade balance refers to the difference between what a country sells to others and what it buys from them. If the peso is strong, it can make imports cheaper, which might lead to a trade deficit, where a country buys more than it sells. So, the relationship can be understood as peso appreciation leading to a potential trade balance that might shift toward a deficit.