What you need to know:
1
RBC modified its CAD forecast profile in June, turning bullish on USD/CAD into year end 2026 and maintaining a bearish stance for 2027.
2
With USD/CAD having peaked near 1.4250 and returning below 1.4000, we revisit the factors that drove the forecast revisions.
3
We identify a change in the US dollar's safe haven status as a developing risk to our view.
4
In addition, joint Fed/BoJ intervention in USD/JPY and bruised Fed credibility are new short-term developments that have challenged our view.
5
Other factors, such as asset flows and rate differentials remain supportive of the USD, with trade uncertainty continuing to linger in the background.
For the trading range:
USD/CAD
Buyers
1.3700/1.3800
Sellers
1.4100/1.4200
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