Synopsis: Goldman Sachs has revised its USDCAD forecasts lower, citing stronger-than-expected Canadian data, a supportive fiscal policy stance, and diminished expectations for Bank of Canada (BoC) rate cuts. While Canada’s close ties to the U.S. may limit broader gains on the crosses, Goldman expects the Canadian dollar to outperform the U.S. dollar through the remainder of 2025.
Key Drivers Behind the Revision
Emerging Trade War Effects Canada’s recent payrolls report may be the first sign that the U.S.-led trade war is beginning to weigh on hard economic data beyond the U.S.
BoC Defers to Fiscal Support The BoC is emphasizing fiscal policy—not monetary easing—as the primary buffer against trade-related growth risks. This stance reduces the likelihood of aggressive rate cuts.
CAD Supportive Backdrop A combination of less dovish BoC policy expectations and proactive government stimulus is strengthening the outlook for the Canadian dollar, especially versus the USD.
USDCAD Forecast Revisions Goldman Sachs’ updated projections are: • 3-month: 1.36 (previous: 1.40) • 6-month: 1.35 (previous: 1.39) • 12-month: 1.34 (previous: 1.38)
Conclusion
Goldman Sachs is growing more confident in the CAD’s relative strength against the U.S. dollar, supported by macroeconomic stability and policy alignment. However, due to Canada's close economic ties with the U.S., broader CAD gains on cross-currency pairs may remain limited.
For bank trade ideas, check out eFX Plus. For a limited time, get a 7 day free trial, basic for $79 per month and premium at $109 per month. Get it here.
Tags
This article was written by Greg Michalowski at www.forexlive.com.Hence then, the article about goldman revises usdcad forecast lower was published today ( ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
Read More Details
Finally We wish PressBee provided you with enough information of ( Goldman: Revises USDCAD forecast lower )
Also on site :
- Ukraine will try “to get some concessions” from Trump at meeting
- Numbrix 9 - December 28
- Getting hired in 2026 is all about your ‘microcredentials’ says CEO of $1.3 billion learning platform—this is what he tells Gen Z to focus on