Canada merchandise trade outperforms expectations in June

Canada's June merchandise trade was considerably better than expected, showing a narrowing of the deficit to -0.48bn vs. est. -2.9bn. The report was all around solid, and it's hard to find any concerns within the details. In volume terms, exports were up 4.3% and imports down 0.9%. 

For exports, this was the first monthly increase after five months of declines, and the breadth and composition were both encouraging-up in 9 of 11 sectors, with strong gains outside of energy. While these monthly trade reports can be quite volatile, such a solid print should provide a bit of relief to a BoC that has been looking for this export pickup.