UBS expects USDCAD to decline toward 1.34-1.35 in second half of 2025

Published 01/08/2025, 09:52
© Reuters.

Investing.com - UBS released its latest outlook for the USD/CAD currency pair on Thursday, projecting a downward trend toward the 1.34-1.35 range in the second half of 2025, levels last seen in September 2024.

The Swiss banking giant identified 1.40 as a strong resistance level, noting it would be "eager to increase downside exposure" at that threshold. On the support side, UBS pointed to 1.36, which analysts believe "will be sustainably broken in the coming months."

UBS highlighted several risk factors that could derail its bearish USD/CAD outlook, with potential tariff escalation representing a significant downside risk for the Canadian dollar. The bank also cautioned that a global risk-off shift or an oil price slump could negatively impact the loonie.

The forecast comes as currency markets continue to monitor central bank policies in both the United States and Canada, with interest rate differentials playing a crucial role in the pair’s movement throughout 2025.

The USD/CAD exchange rate serves as a key indicator for trade relations between the two neighboring countries, with its movements affecting various sectors including manufacturing, energy, and agriculture across the North American economic landscape.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.