What you need to know:
Our economic outlook calls for moderate USD/CAD weakness in 2026.
Fed rate cuts and hedging flows are expected to be primary drivers that contribute to broader-based USD weakness.
RBC’s forecast profile for USD/CAD is below the Bloomberg median consensus forecasts.
A recent bearish channel breakout ended an uptrend that had been in place for USD/CAD since late July, pointing to a shift in sentiment.
We outline various scenarios that would serve as bullish or bearish risks to our USD/CAD view.
For the trading range:
USD/CAD
Buyers
1.3600/1.3700
Sellers
1.4000/1.4100
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