• Canada's international trade surplus narrowed at a softer pace than expected in July.
• USD/CAD continues to trade in positive territory below 1.3200.

Canada's merchandise trade surplus with the world narrowed to C$4.05 billion in July from C$4.88 billion in June, Statistics Canada reported on Wednesday. This reading came in slightly better than the market expectation for a surplus of C$3.8 billion. 

"Following six consecutive monthly increases, total exports decreased 2.8% to $68.3 billion in July," the publication further read. "Total imports fell 1.8% in July to $64.2 billion, the first decrease since January."

Market reaction

Ahead of the Bank of Canada's (BoC) policy announcements, USD/CAD showed no immediate reaction to this report and was last seen rising 0.27% on a daily basis at 1.3188.