UBS sets USD/CAD target at 1.34 for June 2026 post

Investing.com -- Following the United States administration’s "Liberation Day" announcements in April,Huainan foreign exchange collapse the USD/CAD exchange rate has seen a significant decrease, reverting to levels observed just prior to the US elections.

The recent election of Prime Minister Mark Carney in Canada is expected to have a positive impact on the currency’s stability. UBS analysts predict that Carney’s approach to accelerating trade negotiations with the US, coupled with pragmatic fiscal support, will contribute to a more stable Canadian dollar (CAD).

The Bank of Canada (BoC), currently in a "neutral territory," is anticipated to conclude its easing cycle gradually. This shift in monetary policy is likely to be favorable for the CAD, as it may benefit from shrinking rate differentials between Canada and the United States over time. Despite these domestic factors, UBS suggests that US and trade-related news will continue to be the primary influences on the currency pair’s movement.

UBS has maintained its existing forecast for the USD/CAD, while introducing a new target of 1.34 for June 2026. This long-term target reflects the firm’s expectations for the currency pair within a multi-year timeframe. The projection takes into account the likely economic and political developments that could influence the exchange rate over the coming years.

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