In the fourth quarter, Canada’s annualised gross domestic product (GDP) increased by 2.6%, surpassing predictions of 1.9%. This indicates a solid performance in the country’s economy during this period.

The US Dollar’s performance has been mixed, with the EUR/USD pair stabilising near 1.0400 following January’s PCE inflation data release.

Gold prices have dipped to levels below $2,840, primarily due to uncertainties linked to ongoing trade policies and market dynamics.

GBP/USD has shown resilience, remaining above 1.2600 amidst fluctuating conditions after the PCE data was published. The upcoming week will see significant economic events, such as US payroll figures and an ECB meeting.

Canada’s economy performed well in the final quarter, growing faster than expected at 2.6% on an annualised basis. Forecasts had suggested 1.9%, making this a positive surprise. A stronger expansion like this often suggests resilient consumer spending and business investment. It also means that expectations for future monetary policy may shift slightly, since central banks tend to respond to economic performance.

Meanwhile, the US dollar has shown mixed movements. The EUR/USD pair has stabilised around 1.0400, which is not far from where it was before January’s PCE inflation data became public. This data point is one of the US Federal Reserve’s preferred inflation measures, meaning markets follow it closely when adjusting positions on currency pairs.

Gold has come under pressure, falling below $2,840. This is linked to uncertainties surrounding trade policies and other market forces. Precious metals often struggle when there is uncertainty about global commerce, particularly if investors anticipate changes in monetary policy that could affect demand for safe-haven assets.

The British pound has remained firm above 1.2600 against the US dollar, despite variable market conditions following the recent release of PCE data. When a currency remains stable or outperforms in uncertain conditions, it typically suggests confidence among traders regarding its short-term outlook.

As the coming week unfolds, key events will require attention. US payroll figures are on the horizon, and they often influence expectations for interest rate decisions. There is also an important meeting by the European Central Bank, which could refine speculation around policy directions in that region. Both developments will affect market behaviour, requiring a close watch to gauge potential shifts in trading conditions.