Canada: Still expecting decent economic growth in Q3 – NFB

Matías Salord FXStreet

Data released on Tuesday showed an unexpected contraction during the second quarter in GDP growth in Canada. According to National Bank of Canada analysts, growth should pick up during the third quarter to a decent rate supported by commodity prices and the easing of health measures.

Key Quotes:

“The drop in Canada's GDP in the second quarter came in as a surprise, as GDP by industry including the preliminary June estimate showed a 2.5% growth a month ago. This has been reduced to a flat print after significant revisions to prior months. This is the worst among the G-7 countries, an underperformance due to the health measures that have held back the economic recovery.”

“Canada's nominal GDP is now 5.1% above its pre-recession peak, the best performance in the G7. The jump in resource prices contributed to this development, with the terms of trade at their highest level since 2008.”

“Despite the disappointing preliminary reading for July GDP, we continue to expect decent economic growth in Q3 as commodity prices hold up and the easing of health measures allows consumers to spend after months of forced frugality.”

“Growth could be affected by supply difficulties in the automotive sector that could last until the end of the year.”

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

AUD/USD bulls regain control above 0.6950 amid USD retreat

AUD/USD regains traction and extends the previous day's bounce from the weekly low, aiming for 0.7000 in Asia on Friday. The overnight pullback in US bond yields keeps the US Dollar below an 18-month high, which in turn offers some support to the pair. Meanwhile, hawkish RBA expectations also keep the major underpinned.

USD/JPY holds gains near 158.00 after Japan's weak Household Spending data

USD/JPY clings to gains around 158.00 after data showed on Friday that Japan's Household Spending fell for the ninth straight month, undermining the Japanese Yen. Meanwhile, the US Dollar remains depressed as the overnight fall in US bond yields counters a hawkish Fed and geopolitical uncertainties, could cap any downside in the pair.

Gold trims gains; back below $4,200

Gold now gives away part of its initial bullish attempt to weekly highs, returning to the area below the $4,200 mark per troy ounce on Friday. The current pick-up in the US Dollar’s upside momentum in combination with rising US Treasury yields across the curve seem to keep extra gains in the yellow metal under scrutiny.

Ethereum activates Glamsterdam on Sepolia testnet: Why the price is falling anyway

Ethereum (ETH) has reached a key milestone in its next major network upgrade. The planned changes aim to improve Ethereum’s Layer 1 capacity and efficiency as network activity grows. The development comes as ETH retreats toward $2,500, highlighting the contrast between the network’s long-term technical progress and its short-term market weakness.

UoM Consumer Sentiment Index expected to decline in October amid high Oil prices

The Preliminary Michigan Consumer Sentiment Index is forecast to decline for a third consecutive month in October. The US Dollar Index maintains upward pressure near its 2026 peak in the 102.50 region ahead of the release.

The UK 30-year gilt just hit a 1998 high. Is that good or bad for the British Pound?

The yield on the UK's 30-year government bond, or gilt, went through 6% on October 1 for the first time since early 1998, and on Monday the Pound was at its strongest against the Euro since June 2025. The gilt market's 28-year high is mostly someone else's. Since early May, the 30-year gilt yield has risen about 0.15 of a percentage point and the US 30-year about 0.7.