UBS revised its USD/CAD forecasts

UBS* revised down its forecasts for the dollar against the Canadian dollar, which were initially formed in the context of increasing trade tensions.

The bank now expects USDCAD to depreciate over time to 1.36 in March 2026.

Tensions with canada are Easing. uBS believes the pair will gradually decline over the bank's forecast period.

The earlier high at 1.46 remains a major resistance level that will not be broken sustainably. Support is at 1.35.

UBS writes that higher tariffs in the US are the main risk for the Canadian dollar. Worsening economic conditions in the US and declining confidence in the US dollar (USD) as a safe haven currency could weaken the USD.

*UBSGroup AG is the largest Swiss financial holding company, providing a wide range of financial services around the world. The place of registration of the bank and the location of its head office is Zurich.

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