United States: Growth and labour momentum support US Dollar – RBC Economics

RBC Economics notes that U.S. growth and labour-market momentum remain strong, with GDP forecasts revised higher to an average of 2.4% in 2026–2027 and unemployment expected near historical lows at 4.2%. Rising core inflation and producer-price data suggest building pressures, reinforcing expectations for further Fed tightening and a larger U.S. hiking cycle relative to Canada.