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

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

Source: EODHD - https://www.investing.com/news/forex-news/ubs-expects-usdcad-to-decline-toward-134135-in-second-half-of-2025-93CH-4165084
Published: Aug 01, 2025 4:51 AM

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-of...

Market context: This update is relevant to USD traders, with USDCAD as the primary instrument to monitor for follow-through, trend continuation, or headline volatility.