Canada Trade Surplus Widens to C$5.4 Billion in September, Pressuring USD/CAD

USD/CAD fell below key support around 1.3936–1.3963 as Canada's merchandise trade surplus widened to C$5.4 billion in September, beating consensus expectations of C$4.1 billion. The surplus reached its highest level since May 2022, following an upwardly revised C$4.95 billion surplus in August. Total exports edged up 0.2% to a record C$78.6 billion, lifted by price gains in metals and energy, while imports dipped 0.3% to C$73.71 billion. Despite nominal gains, overall export volumes dropped 4.0% month-over-month. The pair now targets its 200-day moving average at 1.38919.