The index represents the total number of trade operations in Canada. Balance of trade is a difference between the values of manufactured and shipped out of country (exports) and brought into the country (imports) production. The positive balance of trade is referred to a trade surplus while the negative balance is a trade deficit. It worth mentioning that about 65% of Canadian export falls on USA.
Effect of market
It has a strong influence on the Canadian Dollar dynamics. The trade balance surplus growth or its deficit is a positive sign for the Canadian currency.