The USD/CAD pair hovered sideways around 1.3785 during early Asian trading on Friday. Market participants are keeping a close eye on developments regarding a potential US-Iran ceasefire agreement, while Canada’s upcoming Q1 2026 GDP report is projected to reveal an annualized growth rate of 1.5%.
The US Dollar and Canadian Dollar are essentially stuck in place near 1.3785 this Friday morning as currency traders weigh two massive market drivers: Middle East geopolitics and Canadian economic data.
On the geopolitical front, there is hope for an extended peace deal between the US and Iran. The Guardian reported a potential 60-day extension to keep vital shipping lanes open while bigger issues, like Iran’s nuclear ambitions, are negotiated. US Vice President JD Vance confirmed they are still ironing out a few specific phrases but are moving in the right direction. If this peace deal goes through, oil prices will likely drop. Since Canada exports a ton of oil, any major shift in crude prices heavily impacts the value of the Canadian Dollar.
Meanwhile, Canada’s latest GDP numbers drop later today. After shrinking by 0.6% at the end of 2025, the economy is expected to bounce back with 1.5% growth for the first quarter of 2026. If the data beats expectations, expect the “Loonie” to gain some muscle against the US Dollar.
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