Canada: International Merchandise Trade Deficit expands to $2.5 billion in July

• Canada's trade international trade deficit widened in July.
• USD/CAD continues to trade in the positive territory above 1.3100.

Canada's International Merchandise Trade Deficit widened to $2.5 billion in July from $1.6 billion in June, the data published by Statistics Canada revealed on Thursday. This reading came in largely in line with the market expectation.

"Imports increased 12.7% in July, while exports rose 11.1%. The largest contributor to this growth for both imports and exports was the motor vehicles and parts product category," the publication read. "Compared with February 2020, the month before the COVID-19 pandemic's economic impact was felt in Canada, imports (-4.1%) and exports (-6.0%) were down."

Market reaction

The USD/CAD pair largely ignored this data and was last seen gaining 0.52% on a daily basis at 1.3109.