Canada: International Merchandise Trade surplus narrows to C$0.42 billion in February

• Canada's international trade surplus narrowed unexpectedly in February.
• USD/CAD trades virtually unchanged on the day at around mid-1.3400s.

Canada's merchandise trade surplus with the world declined to C$0.42 billion in February from to C$1.2 billion in January, Statistics Canada reported on Wednesday. This reading came in worse than the market expectation for a surplus of C$1.8 billion.

"Exports were down 2.4%, while imports decreased 1.3%," Statistics Canada further noted in its publication. "The February surplus is close to the typical bounds for monthly revisions to imports and exports."

Market reaction

USD/CAD has erased its daily gains in the early American session and was last seen trading flat on the day at around 1.3450.