Canadian Dollar holds steady with US-Iran ceasefire progress and Canada GDP in focus
The USD/CAD pair trades on a flat note around 1.3785 during the early Asian trading hours on Friday. Traders continue to assess the developments surrounding the US-Iran agreement to extend a ceasefire. Canada’s Gross Domestic Product (GDP) report for the first quarter (Q1) will be in the spotlight later on Friday.
The Guardian reported on Thursday that the agreement would extend the truce for another 60 days and allow traffic to flow through the strategic waterway while negotiators tackle difficult issues such as Iran's nuclear program. On Friday, US Vice President JD Vance said that “a couple of language points” are still under discussion, but the sides are making progress in peace talks.
Positive developments surrounding the ceasefire deal could drag the crude oil prices lower. It is worth noting that Canada is a major oil-exporting country, and lower crude oil prices generally have a positive impact on the Canadian Dollar (CAD).
Traders brace for Canada’s GDP data later on Friday for fresh impetus. The Canadian economy is projected to show annualized growth of 1.5% in Q1 of 2026, compared to a contraction of 0.6% in Q4 of 2025. If the report shows a stronger-than-expected outcome, this could provide some support to the Loonie against the US Dollar (USD) in the near term.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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