FX.co ★ Canadian Dollar Strengthens to Near 8-Month High

The Canadian dollar exceeded the 1.37 per USD mark, reaching its strongest level in nearly eight months, buoyed by a robust domestic economy and rising commodity prices. In the first quarter, Canada's economy grew at an annualized rate of 2.2 percent, surpassing the 1.7 percent expectation. This growth was driven by a substantial increase in exports and inventory buildup as companies expedited shipments in advance of potential U.S. steel tariffs, while retail sales experienced a significant uptick for the second consecutive month, indicating widespread consumer demand. Concurrently, the Bank of Canada's trimmed-mean core inflation reached its highest point in a year in April, bolstering market confidence that the BoC will sustain its policy rate in June, rather than consider reductions. Additionally, the rise in crude oil prices—fueled by OPEC+'s decision to cap output increases—has bolstered Canada's petroleum export revenues, further strengthening the Canadian dollar.