The Canadian Dollar falls on the best quarter since 2023
Canada produced the strongest growth figure of the cycle and the Canadian Dollar (CAD) is weaker for it. Gross Domestic Product (GDP) rose 3.3% annualized in the second quarter, the fastest pace since early 2023 and comfortably above the 2.5% the Bank of Canada had forecast, while a revision to the first quarter erased the technical recession that had framed every rate discussion in Ottawa since May. USD/CAD trades just beneath 1.3900 on Friday regardless. A quarter that ended before the tariff arrived The composition of the report is stronger than the modest headline miss against a 3.4% consensus suggests. Exports rose 3.6% on the quarter, the largest increase in three years, led by a 27% jump in shipments of passenger cars and light trucks as domestic auto production recovered from two quarters of decline. Business capital investment rose 2.3% and broke a five-quarter losing streak, and June activity added 0.3% against a 0.2% forecast. None of it describes the economy currently trading. The quarter ended June 30, seven weeks before a 50% American duty landed on roughly C$27.6 billion of Canadian goods on August 22, and before Ottawas matching measures take effect September 8. Statistics Canada already has July output flat and









