Goldman Sachs: Revising our USD/CAD forecasts lower | Forexlive

Goldman Sachs has lowered its USD/CAD forecasts, citing resilient Canadian data, a supportive fiscal policy stance, and reduced expectations for BoC easing. While Canada’s exposure to the US limits CAD’s outperformance on the crosses, Goldman expects CAD to outperform USD over the rest of 2025.

Key Points:

• First Signs of Trade War Impact Emerging:

• BoC Defers to Fiscal Policy:

• Stronger CAD on Net:

• USD/CAD Forecasts Revised Lower:

  • 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 increasingly confident in the Canadian dollar’s relative strength against the greenback, citing policy dynamics and early macro resilience. However, due to close US linkages, CAD may struggle to outperform broadly on the crosses.

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