Last month was originally reported at +0.81B surplus. Revised to +0.42B

Following three consecutive monthly surpluses, Canada's merchandise trade balance with the world posted a $972 million deficit in February. The expectations were for a surplus of $600 million.

  • Exports were down 2.4%, with decreases in 8 of 11 sections.
  • Imports edged up 0.6%, on higher imports of special transactions trade and motor vehicles and parts.

The prior month's surplus was also lowered to a 420 million surplus from a previously reported surplus of 810 million.

Year over year, exports were up 4.4%. There were lower exports of farm, fishing and intermediate food products, aircraft and other transportation equipment and parts, as well as consumer goods. In February, exports excluding energy products were also down 2.4%.

Total imports edged up 0.6% in February to $46.3 billion with declines in 7 of 11 sections. Volumes and prices were both up 0.3%. Higher imports of special transactions trade, motor vehicles and parts, and farm, fishing and intermediate food products contributed the most to the increase. Year over year, total imports rose 1.4%.

Imports of motor vehicles and parts rose 1.8% to $9.1 billion in February, the highest value since the record high set in August 2016. Imports of passenger cars and light trucks led the increase, up 1.9% to $4.2 billion

  • Imports from the US decreased 1.6% to $29.9 billion in February, led by lower imports of aircraft and crude oil.
  • Exports to the United States were down 1.2% to $34.4 billion. As a result, Canada's trade surplus with the United States widened slightly from $4.4 billion in January to $4.5 billion in February. The Canadian dollar gained 0.5 cents US relative to the US dollar in February.

Of course trade surpluses are being scrutinized by the Trump administration.

The USDCAD is trading near the high for the day after the 8:30 AM data and at the highest levels since March 15th. It trades currently at 1.3445. The high reached 1.3447. The pair has been able to extend the highs from the last few weeks at the 1.3408-14 area in trading today. That is a risk defining level for longs now.