• Canada's international trade surplus widened modestly in January.
• USD/CAD trades virtually unchanged on the day at around mid-1.3700s.

Canada's merchandise trade surplus with the world widened to C$1.92 billion in January from to C$1.19 billion in December, Statistics Canada reported on Wednesday. This reading came in better than the market expectation for a deficit of C$0.06 billion.

"In January, Canada's merchandise exports increased 4.2%, while imports were up 3.1%," the report further read.

Market reaction

USD/CAD's reaction to this data was largely muted with investors awaiting the Bank of Canada's policy announcements. As of writing, the pair was virtually unchanged on the day at 1.3755.