CAD flows: CAD firmer after stronger GDP

USD/CAD has fallen half a figure after the stronger than expected 0.2% rise in Canadian September GDP and the 0.6% rise in Q3 that results. The impact n front end Canadina yields is quite modest, around 2 or 3 bps, so there isn’t much scope for USD/CAD to fall below 1.40 without some further increase in US easing expectations. There is now no further BoC rate cut priced in albeit around a 40% chance of one by mid-2026.