Canada Business Sentiment Drops Following Breakdown of US Trade Talks

Key Facts

1RBC reports that Canadian business sentiment weakened markedly following the breakdown of trade talks with the U.S.

RBC reports that Canadian business sentiment weakened markedly following the breakdown of trade talks with the U.S. According to FXStreet, this decline in confidence reverses gains made through August, as the failure of negotiations and rising prices create fresh economic uncertainty.

RY closed at $196.3 on October 19, 2026, trading between a low of $195.7 and a high of $198.43 during the session. This weakening sentiment follows Canadian inflation data released on October 19, 2026, which showed a year-over-year rate of 3.1% and a core inflation rate of 2.2%.

The market is looking ahead to Canadian retail sales data scheduled for October 23, 2026, which will provide further insight into domestic consumption amid trade tensions. Additionally, the New Housing Price Index is due on October 22, 2026, potentially impacting economic growth outlooks.