Canadian Dollar Awaits Key Gross Domestic Product Figures

Canadian dollar traders need to beware of volatility on Friday, as expansion in Canada is anticipated to grow at the slowest pace in nearly five years. Q1 GDP is forecasted to hit a tepid 0.4 percent, down from 0.8 percent in Q4 2007. The culprit? The sharp economic slowdown in the US. As a massive importer of foreign goods, the health of the US economy tends to be important for most exporting countries. However, the US is the biggest importer of Canadian goods, making the health of the Canadian economy particularly dependent on their southern neighbor.