Canada's trade data for May signals a stronger economic momentum heading into Q2, with the trade surplus significantly exceeding forecasts. Export strength, particularly in energy and precious metals, supported this outcome, although the elevated export levels may not be sustained given recent oil price declines. The narrowing of imports suggests a moderation in domestic demand for certain materials, offsetting broader increases. The widening surplus with the US underpins bilateral trade strength, but growing deficits with other nations warrant attention. Overall, this data supports a positive outlook for the CAD in the near term, though traders should remain cautious of potential volatility from energy market corrections.