Canadian trade gap shrinks unexpectedly to C$1.94 in August

Canada's trade deficit narrowed markedly in the eight month of the year, official figures showed on Wednesday. According to Statistics Canada, the country's trade gap shrank to C$1.94 billion ($1.47 billion), its lowest level since the beginning of the year, while economic desks penciled in a slight rise to C$2.60 billion in August. Furthermore, the preceding month's deficit was revised down to C$2.19 billion from the originally reported C$2.49 billion-gap. Canadian exports advanced 0.6%, mainly driven by metal products and consumer goods. The rise in the volume of non-energy exports could actually please the Bank of Canada, which sees non-energy exports as an important factor for a national economic growth. Imports held steady in August, as imports of energy goods dropped for the first time in six months. Canadian exports to the United States declined 1.6% to 74.7% in August, whereas imports decreased 0.1%. Thus, Canada's trade surplus with the US fell to C$2.50 billion from July's C$3.00 billion. 

After the release, the Loonie rose against other major currencies, trading at 1.3193 against the US Dollar, 1.4785 against the Euro, 1.0059 against the Aussie and 78.04 against the Japanese Yen.