Today's GDP Data "Won't Help" the Loonie, Which "Continues Its Sagging Way", says BMO

07:48 AM EDT, 03/31/2026 (MT Newswires) -- The Canadian dollar "continues its sagging ways" at C$1.394 after closing at a weakest level of the year, and today's industry gross domestic product (GDP) for January and preliminary February at 8:30 a.m. ET "won't help the currency", says BMO Economics in its morning note.

After rising 0.2% month over month in December, or 1.0% year over year, real GDP likely stalled in January, as initially estimated by Statistics Canada, adds the bank, noting manufacturing sales, wholesale trade, and existing home sales all fell in the month, though retail sales rose.

BMO says the 'flash' estimate for February will indicate the economy's direction heading into the Iran war. For now, it adds, real GDP looks to rise less than 1% annualized in Q1 after contracting 0.6% in Q4, with business investment "still on the ropes" and key exports held back by United States tariffs.

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