Canada Posts Surprise C$1.8B March Trade Surplus as Exports Hit 14-Month High

Canada delivered a shock C$1.8 billion trade surplus in March 2026, far exceeding forecasts of a C$2.9 billion deficit, with exports surging 8.5% to C$72.8 billion—the highest in 14 months—and energy exports jumping 15.6%. This marks the first surplus since September 2025, widening the U.S. surplus and shrinking other deficits to the smallest since 2021, after February's revised C$5.11 billion deficit. Initial reports highlighted the six-month swing, confirmed by consensus-beating data mid-day. The robust external accounts bolster CAD sentiment, weighing on USDCAD and easing near-term growth and rate-cut concerns.