The Canadian dollar strengthened beyond the 1.37 per USD threshold, its highest level in nearly eight months, supported by robust domestic economic performance and firmer commodity prices. In the first quarter, Canada’s economy expanded at an annualized rate of 2.2 percent, exceeding the 1.7 percent consensus thanks to a significant surge in exports and inventory accumulation as firms front-loaded shipments ahead of anticipated US steel tariffs, while retail sales also recorded a notable second monthly gain, highlighting broad-based demand. At the same time, the Bank of Canada’s trimmed-mean core inflation unexpectedly climbed to its highest level in a year in April, strengthening market expectations that the BoC will maintain its policy rate in June rather than embark on cuts. Moreover, rising crude oil prices - supported by OPEC+’s decision to limit output increases - have bolstered Canada’s petroleum export revenues, further reinforcing the loonie.