CAD Edges Higher on Surprise Current Account Surplus and Rising Oil Prices

The Canadian dollar has shown some resilience in the face of ongoing trade tensions between Canada and the United States. Despite concerns about new US tariffs on Canadian goods, which could hurt the domestic economy, the loonie has edged higher against its US counterpart.

This is largely due to a surprise current account surplus in the second quarter, which came in at C$8.84 billion ($6.37 billion). This marks a significant improvement from the first-quarter deficit of C$8.31 billion and was driven by strong gains in goods exports, including energy products.

The price of oil, one of Canada's major exports, has also risen in response to Washington's confirmation that it is not in talks with Tehran despite diplomatic efforts by other countries. US crude oil futures were up 0.5% at $82.62.