USD/CAD surges as weak US GDP, Canada job losses fuel risk-off sentiment

USD/CAD faced significant volatility as a confluence of weak economic data from both the US and Canada rattled markets. US Q4 GDP came in at just 0.7%, sharply below the 1.4% estimate and prior reading, while US PCE inflation eased slightly to 2.8% y/y versus the 2.9% expected. JOLTs job openings surprised to the upside at 6.946M against a 6.700M forecast, offering mixed signals on labor market health. In Canada, February employment plunged by 83.9K jobs versus expectations of a 10K gain, marking a severe deterioration in the labor market. Geopolitical risk intensified as the Pentagon deployed additional warships to the Middle East, with markets losing confidence in a near-term Iran resolution. Trump's approval slipped to 44%, adding political uncertainty. University of Michigan sentiment edged up to 55.5 versus 55.0 expected, providing marginal consumer confidence support. A federal judge quashed subpoenas targeting the Fed and Chair Powell, reducing institutional risk. Traders should monitor geopolitical developments and upcoming Fed commentary for directional cues on the greenback and loonie.