Canada: International trade surplus shrinks to C$778 million in July

• Canada posted a smaller-than-expected trade surplus in July.
• USD/CAD extends its sideways grind around 1.2600 after the data.

Canada's merchandise trade surplus with the world narrowed to C$778 million in July from C$2.6 billion in June, the monthly data published by Statistics Canada revealed on Thursday. This reading missed the market expectation for a surplus of C$1.4 billion.

"In July, Canada's merchandise imports rose 4.2% and exports increased 0.6%," the publication read. "In real (or volume) terms, total imports rose 1.9% in July, while exports edged down 0.3%."

Market reaction 

The USD/CAD pair showed little to no reaction to this report and was last seen losing 0.06% on the day at 1.2609.