CRUDE OIL BREACHES $70 ON UPBEAT ENERGY DEMAND

Canada reported trade balance data on Tuesday, showing a surprise trade surplus of C$594 million for April, according to Statistics Canada. However, the surplus was recorded due to imports declining at a higher rate than exports, rather than growth in the figures. Analysts had expected the country to record a deficit of C$700 million for the month, following a revised C$1.35 billion gap in March. The Canadian dollar received some support from a rise in crude prices, with oil being one of the country’s major exports. Although oil closed with gains amid rising optimism around a strong rebound in energy demand, Tuesday’s trading session witnessed high volatility. The loonie was also supported by some reports suggesting that Canada is looking to ease border restrictions for travellers. The CAD/USD forex pair declined by more than 0.2% to settle at 1.2114 on Tuesday, ahead of Bank of Canada’s key rate decision. In April, the central bank had become the first among G7 central banks to trim the scope of its covid-19 pandemic support program. The bank is expected to further scale back its asset purchase program next quarter.