USDCAD rebounds after positive US news
The USDCAD pair starts the week with a recovery attempt after last week’s decline, currently trading at 1.4023. Find more details in our analysis for 20 October 2025.
USDCAD forecast: key trading points
- President Donald Trump expressed confidence in the further development of trade relations with China
- Foreign investors increased their holdings of Canadian securities
- Growth was primarily driven by investments in Canadian debt instruments
- USDCAD forecast for 20 October 2025: 1.4115
Fundamental analysis
The USDCAD rate is strengthening after Friday’s sharp drop. The US dollar is attempting to rise thanks to investors’ positive reaction to comments from President Donald Trump, which eased fears of a possible escalation in the US-China trade conflict. Trump voiced confidence in the continued development of trade relations between the two countries, emphasising the need for a fair and mutually beneficial agreement.
Meanwhile, foreign investors invested 25.9 billion CAD in Canadian securities in August 2025, compared to 26.7 billion CAD a month earlier. The main driver of this inflow was investment in Canadian debt instruments, which rose to 32.6 billion CAD, the highest level since April 2024.
USDCAD technical analysis
The USDCAD pair continues to move within an ascending channel despite sellers’ attempts to trigger a correction.
After a short-term decline, the price is testing the lower boundary of the channel, indicating that buying interest remains intact. The Stochastic Oscillator shows a rebound from oversold territory, with a potential upward crossover forming, confirming the market’s readiness to resume growth.
Today’s USDCAD forecast expects bullish movement to continue, with a near-term target at 1.4115. A firm consolidation above 1.4045 would confirm a breakout above the upper boundary of the corrective downtrend channel and signal further upside potential.
Summary
With the US dollar strengthening and steady investor interest in Canadian assets, the short-term USDCAD outlook remains bullish. Technical analysis suggests that the pair retains upward momentum, with the next upside target near 1.4115.