BREAKING: Sharp drop of the CAD; Canadian GDP data spooked investors 🚨

The Canadian economy contracted by 0.1% in Q1 2026, while the market had expected growth of as much as +1.5%. On a month-over-month basis, March saw a decline of 0.1% m/m (est. 0.0%), and annual GDP growth was a mere 0.4% y/y compared to the expected 0.9%. The data confirms that the Canadian economy is increasingly feeling the effects of the trade war with the US—exports are slowing sharply, and consumption is not making up for the losses. This opens the door to further rate cuts by the Bank of Canada, which had already signaled caution. CAD under heavy pressure — USDCAD has skyrocketed.

Source: xStation

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