Canadian Dollar and Business Outlook: Canada’s economy sees unexpected growth

Glacier FarmMedia | MarketsFarm – The Canadian dollar was firmer on Friday morning after welcome economic news from Statistics Canada.

The loonie was at US$0.7248 or US$1=C$1.3797 as of 8:32 a.m. CDT, compared to Thursday’s close at US$0.7243 or US$1=C$1.3806.

StatCan reported this morning that Canada’s economy grew by 2.2 per cent in the first quarter of 2025, expanding faster than expected. Exports to the U.S. before tariffs came into effect drove growth. The Bank of Canada will decide on Wednesday whether to lower its key interest rate or stay put.

The U.S. Dollar Index was down 0.27 of a point at 99.55. A U.S. appeals court reinstated President Donald Trump’s tariff regime a day after a federal judge struck down the tariffs.

Crude oil prices were lower ahead of projected output hikes by OPEC+ and amidst trade tensions between the U.S. and other countries.

Brent crude oil dropped US$0.15 per barrel at US$64.00 per barrel and West Texas Intermediate was down US$0.13 at US$60.81/barrel.

The TSX/S&P Composite Index lost 19.62 points at 26,190.94.

Gold lost US$21.50 per ounce at $3,322.40.