Bank of Canada survey shows sentiment improving, but expectations remain soft

Joshua Gibson FXStreet

The Bank of Canada's (BoC) latest sentiment survey of Canadian businesses revealed that while firms are experiencing a general uptick in forward-looking sentiment, a lot of them are still feeling a growth crunch at the hands of tariffs from the US that are discouraging active trade.

Key highlights

Q3 Business Outlook Survey shows overall intentions remain subdued despite gradual improvement in sentiment.
Q3 Business Service Indicator -2.28 versus -2.40 in Q2.
Expectations for growth in domestic and exports sales remain soft amid trade tensions.
Balance of opinion on indicators of future sales is 0.0, up from -6.0 in Q2.
27% of firms reported outright decline in sales over previous 12 months, up from 24% in Q2.
18% of firms expect inflation to be above 3% for next two years, down from 23% in Q2.
33% of firms expect Canada to be in a recession over the next year, up from 28% in Q2.
35% of firms expect lower labor costs over next 12 months, 14% see higher labor costs.
BoC Q3 Survey of Consumers for next 12 months shows 64.1% of Canadians expect a recession, down from 64.4% in Q2.
BoC Consumer Survey shows expectations for 5-year inflation have risen to 3.67% from 3.45% in Q2.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

EUR/USD: US Dollar comeback in the makes?

The US Dollar stands victorious at the end of another week, with the EUR/USD pair trading near a four-week low of 1.1742, while the USD retains its strength despite some discouraging American data released at the end of the week. The pair edged higher on Friday, after the United States Supreme Court ruled against President Donald Trump's tariffs, although the advance is not enough to change the latest USD flow.

GBP/USD braces for more pain, as 200-day SMA tested

GBP/USD broke the previous week’s consolidation to the downside, as sellers returned with pomp, smashing the major back toward the levels last seen in late January. The pair tested bids below the 1.3450 barrier as the US Dollar strength largely played out throughout the week, while the Pound Sterling stepped back on expectations of divergent monetary policy outlooks between the Bank of England and the US Federal Reserve.

Gold rises to near $5,100 as Trump’s tariffs boost haven demand, US-Iran talks eyed

Gold price edges higher to near $5,095 during the early Asian session on Monday. The precious metal extends the rally amid US President Donald Trump’s tariff threats and uncertainty, boosting safe-haven flows.

Week ahead: Markets brace for heightened volatility as event risk dominates

Dollar strength dominates markets as risk appetite remains subdued. A Supreme Court ruling, geopolitics and Fed developments are in focus. Pivotal Nvidia earnings on Wednesday as investors question tech sector weakness. Yen and aussie diverge; both pound and euro could recoup their losses.

Broadening drivers of growth: Unpacking GDP and looking ahead

This week’s data delivered a familiar theme with an important twist. The U.S. economy continues to be shaped by powerful forces in high-tech and AI-related investment, but recent releases suggest the growth story may finally be broadening. At the same time, trade flows are moving in a less supportive direction, reminding us that not all parts of the economy are pulling in sync.

Ripple bulls defend key support amid waning retail demand and ETF inflows

XRP ticks up above $1.40 support, but waning retail demand suggests caution. XRP attracts $4 million in spot ETF inflows on Thursday, signaling renewed institutional investor interest.