Deutsche Bank
FX Blueprint 2026: The Great Rotation
LIVE12 December 2025USD bearish
Back to CurrenciesModerately Bullish
USD/CAD
USD weakness beneficiary
DB Forecast Path
Cross-Firm Forecast Comparison
Key Drivers
USD weakness
USMCA outcome
Oil prices
BoC policy
Growth outlook
All Firm Targets (Dec '26)
JPMModerately Bearish1.42
BARCModerately Bearish1.36
GSModerately Bullish1.35
BofAModerately Bearish1.35
INGModerately Bullish1.34
MSModerately Bullish1.34
MUFGModerately Bullish1.34
DBModerately Bullish1.32
Key Issues for 2026
1.CAD appreciates primarily on USD weakness
2.USMCA resolution removes tail risk
3.Oil prices provide floor
4.BoC near terminal
5.Domestic growth stabilizing
Analysis Summary
CAD benefits from USD weakness even as domestic fundamentals are mixed. USMCA resolution removes tail risk. Oil prices provide support. USD/CAD to 1.32 reflects broad USD depreciation.