Don’t miss the 2025 Spring Economic Briefing, where George Davis will discuss our latest economic, interest rate and currency forecasts amidst the uncertainty of tariffs.
What you need to know:
Tariffs remain front and center as companies and investors navigate tariff and financial market uncertainty.
Although tariffs remain a negative risk for economic growth, a deeper dive into the details indicate that Canada may have some relative advantages when compared to other countries as the net impact of tariffs may not be as bad as the headline figures suggest.
The “Liberation Day” tariffs adopted by the US have shifted growth and inflation risks directly to the US economy.
A narrowing in the interest rate differential between Fed funds and the Bank of Canada overnight rate will lend some support to CAD.
Our forecast of broader-based USD weakness through 2026 also contributes to our recently revised downward trending forecast profile for USD/CAD through 2026.
For the trading range:
USD/CAD
Buyers
1.3500/1.3600
Sellers
1.3900/1.4000
