Goldman Sachs: Revising our USD/CAD forecasts lower

Goldman Sachs has lowered its USD/CAD forecasts, citing resilient Canadian information, a supportive fiscal coverage stance, and diminished expectations for BoC easing. Whereas Canada’s publicity to the US limits CAD’s outperformance on the crosses, Goldman expects CAD to outperform USD over the remainder of 2025.

Key Factors:

• First Indicators of Commerce Conflict Affect Rising:

• BoC Defers to Fiscal Coverage:

• Stronger CAD on Internet:

• USD/CAD Forecasts Revised Decrease:

  • New projections:

    • 1.36 in 3 months (prior: 1.40)

    • 1.35 in 6 months (prior: 1.39)

    • 1.34 in 12 months (prior: 1.38)

Conclusion:

Goldman Sachs is more and more assured within the Canadian greenback’s relative power towards the dollar, citing coverage dynamics and early macro resilience. Nevertheless, on account of shut US linkages, CAD could battle to outperform broadly on the crosses.