Canada: International Merchandise Trade Deficit narrows to $677 million in May

• Canada’s trade deficit declined at a stronger pace than expected.
• USD/CAD pair posts modest daily gains in early American session.

Canada’s International Merchandise Trade Deficit narrowed to $677 million in May from $4.3 billion in April, the data published by Statistics Canada revealed on Thursday. This reading came in much better than the market expectation for a deficit of $3 billion.

“Following a 29.1% decline in April, total exports increased 6.7% in May, reaching $34.6 billion,” the publication read. “After falling 25.2% in April, total imports declined a further 3.9% in May to $35.3 billion, with 7 of 11 product sections decreasing.”

Market reaction

The USD/CAD pair edged lower after this data and was last seen losing 0.1% on the day at 1.3572.