USD/CAD remains stable around 1.3785 during the early Asian session on Friday. Traders will pay close attention to reports regarding the ceasefire agreement between the US and Iran. Canada’s GDP is projected to exhibit an annualised growth rate of 1.5% for the first quarter of 2026. The USD/CAD pair is trading in a stable manner around 1.3785 during the early Asian trading hours on Friday. Market participants are actively evaluating the implications of the recent developments regarding the US-Iran agreement aimed at prolonging the ceasefire. Canada’s Gross Domestic Product report for the first quarter will be a focal point later on Friday.
It was reported on Thursday that the agreement would extend the truce for another 60 days and permit the flow of traffic through the strategic waterway while negotiators address challenging issues, including Iran’s nuclear program. On Friday, US Vice President JD Vance indicated that “a couple of language points” remain under discussion; however, progress is being made in the peace talks. Positive developments surrounding the ceasefire deal may exert downward pressure on crude oil prices. It is important to recognise that Canada stands as a significant player in the oil export market, and typically, declines in crude oil prices tend to exert a favourable influence on the Canadian Dollar.
Traders prepare for the release of Canada’s GDP data later on Friday, seeking new momentum. The Canadian economy is anticipated to exhibit annualised growth of 1.5% in the first quarter of 2026, in contrast to a contraction of 0.6% observed in the fourth quarter of 2025. If the report indicates a stronger-than-anticipated result, this may offer some backing to the Loonie relative to the US Dollar in the short term.