MNI DATA BRIEF: Canada Has Surprise CAD594M Apr Trade Surplus

Canada's merchandise trade balance shifted into an unexpected surplus in April, as the global automobile microchip shortage pulled down imports faster than exports, government figures showed on Tuesday.

Statistics Canada's reported April trade surplus of CAD594 million followed a revised March deficit of CAD1.3 billion. Economists predicted a CAD1 billion deficit.

While imports fell 4.7%, exports were down just 1%, aided in part by larger shipments of seafood. Canada's dollar has reached the strongest since 2015 this year in a move the central bank has suggested may not be in line with fundamentals, and sources have told MNI the BOC will more likely shave its economic forecasts rather than talk down the dollar if its strength becomes uncomfortable.