Banks See CAD Appreciation Through 2026, Trade Poses 'Clear' Risk -- Market Talk

Dow Jones
11/14

1633 ET - The economics teams at two major Canadian banks expect the Canadian dollar to appreciate in 2026, with USDCAD reaching C$1.33 at the end of next year from its current C$1.40 level. BMO Capital Markets says the prospect of further Bank of Canada rate cuts has faded, and the Federal Reserve is likely to continue the easing cycle. BMO says CAD will still lag its advanced-economy peers, due to US trade-policy uncertainty. Its call for C$1.33 assumes the current USMCA trade treaty remains intact. Meanwhile, Bank of Nova Scotia says rate policy and "significant fiscal stimulus" will help backstop Canada's GDP growth, and also expects US/Canada rate spreads to narrow through 2026. Scotiabank adds trade-policy risks do pose "a clear and present danger" to its forecast. (paul.vieira@wsj.com; @paulvieira)

(END) Dow Jones Newswires

November 13, 2025 16:33 ET (21:33 GMT)

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