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    Canada’s imports fell from $66.91 billion to $64.08 billion in September.

    by VT Markets
    /
    Dec 11, 2025
    Canada’s imports dropped to $64.08 billion in September, down from $66.91 billion in August. This change may impact the country’s trade balance and economic activities. The decline in imports could alter analysts’ predictions for Canada’s economy in the coming months. Stakeholders are encouraged to monitor these economic signs closely as trade patterns shift.

    Early Signs of Economic Slowdown

    More updates will be shared as new data is released. The September drop in imports to $64.08 billion signals a larger economic slowdown. This trend persisted into the fall, with recent data from Statistics Canada showing that the trade surplus further narrowed in November. This ongoing weakness confirms that domestic demand is cooling as we approach the new year. This slowdown matches Canada’s recent GDP growth for Q3, which was a low 0.2%. Current forecasts for Q4 suggest that growth may be nearly flat. With November’s inflation rate dropping to 2.1%, the Bank of Canada faces less pressure to keep interest rates high. We anticipate that this situation may give the central bank room to consider cutting rates in the first quarter of 2026.

    Financial Strategies Amid Potential Rate Cuts

    Given the Bank of Canada’s recent shift in tone, we should explore options that benefit from a weaker Canadian dollar. For instance, buying call options on the USD/CAD pair with strike prices around 1.3900 for February or March 2026 could be wise. This strategy allows us to profit if the central bank moves to cut rates. We can also look at interest rate derivatives to position ourselves for this expected policy change. A similar situation occurred in late 2019, when futures contracts surged months before the Bank of Canada began cutting rates in early 2020. Going long on Canadian Bankers’ Acceptance futures (BAX) or options on 2-Year Government of Canada Bond futures (CGB) can help capture the effects of lower borrowing costs. Create your live VT Markets account and start trading now.

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