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  • Canada’s International Merchandise Trade fell to -$3.3 billion in April.
  • Disappointing trade data weighs on loonie in early American session.

Canada’s international merchandise trade deficit widened from $1.5 billion in March to $3.3 billion in April, Statistics Canada reported on Thursday.

Additional takeaways

“In April, production shutdowns in a number of manufacturing industries, falling energy product prices, the closure of many retail stores, and weaker demand due to physical distancing measures related to the COVID-19 pandemic, resulted in drastic decreases in Canada’s exports and imports.”

“Exports fell 29.7% to $32.7 billion in April, the lowest level in more than 10 years.”

“Imports were down 25.1% to $35.9 billion, a value not seen since February 2011.”

“These declines, in both absolute value and percentage, are unparalleled, as monthly decreases of this magnitude have never been observed.”

Market reaction

The USD/CAD pair rose sharply after this data and was last seen gaining 0.25% on the day at 1.3525.