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  • Canada’s international trade deficit narrowed slightly in December.
  • USD/CAD trades virtually unchanged on the day at around mid-1.3400s.

Canada’s merchandise trade deficit with the world narrowed from C$219 million in November to C$160 million in December, Statistics Canada reported on Tuesday. This reading came in better than the market expectation for a deficit of C$1 billion.

“In December, Canada’s merchandise exports decreased 1.2%, mostly on lower exports of energy products,” the publication read. “Meanwhile, imports were down 1.3%, mainly driven by lower imports of consumer goods.”

Market reaction

USD/CAD showed no immediate reaction to these figures and was last seen trading flat on the day at 1.3448.

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