MUFG
2026 FX Outlook: Post-Peak USD World
LIVE19 December 2025USD bearish
Back to CurrenciesModerately Bullish
USD/CAD
CAD benefits from broad USD weakness. Oil price stability and improved US-Canada
MUFG Forecast Path
Cross-Firm Forecast Comparison
Key Drivers
Oil prices
BoC terminal rate
USMCA outcome
US growth spillover
Housing market
All Firm Targets (Dec '26)
JPMModerately Bearish1.42
BARCModerately Bearish1.36
GSModerately Bullish1.35
BofAModerately Bearish1.35
MUFGModerately Bullish1.34
INGModerately Bullish1.34
MSModerately Bullish1.34
DBModerately Bullish1.32
Analysis Summary
CAD benefits from broad USD weakness. Oil price stability and improved US-Canada trade relations support. USD/CAD to decline to 1.34 by Q4. BoC easing cycle nearing end limits further rate-driven weakness.