Canadian Dollar Steadies Near Low Ahead of BoC Decision
The loonie traded near 1.3950 per U.S. dollar as Canada reported a trade surplus of 2.72 billion dollars for April. Investors now await a Bank of Canada policy decision where the benchmark interest rate is expected to remain at 2.25 percent.
Canada saw its trade surplus widen to C$2.72B in April as record exports reached C$75.16B. This performance kept the USD/CAD pair steady near 1.3950, just above its weakest level since December 4. The data signals export resilience that may influence the Bank of Canada's approach to persistent inflationary risks.
### Trade Surplus Hits 15-Month High The trade surplus grew to its highest level in 15 months, supported by a 1.6% increase in total exports. Higher crude prices driven by conflict involving Iran contributed to the valuation of Canadian energy shipments. CIBC Capital Markets economist Andrew Grantham noted that exports have largely recovered to levels seen before 2025.
