5-Bank Canadian Dollar Forecast - April 2026
Written by Michael WattThe Canadian dollar forecast for April 2026 signals a range-bound but volatile market, with USD/CAD trading near 1.37–1.40 as persistent inflation, elevated geopolitical risk, and strong U.S. economic performance continue to support the U.S. dollar. Based on aggregated forecasts from Canada’s major banks, the Canadian dollar is expected to gradually strengthen into the second half of 2026, as interest rate differentials narrow, commodity prices stabilize, and global risk sentiment improves.
Canadian Dollar Forecast - April 2026
The Canadian dollar remains influenced by competing macro forces. On one hand, elevated oil prices and commodity demand provide support. On the other hand, strong US economic performance and higher US yields continue to underpin the US dollar.
The divergence in monetary policy expectations remains a key driver. While markets expect eventual easing from both the Federal Reserve and the Bank of Canada, the Fed is likely to move later, maintaining USD support in the near term.
As a result, the Canadian dollar is expected to remain within established ranges through April, with volatility driven by economic data releases and geopolitical developments.
CAD Forecast Snapshot
| Pair | Near-Term Range | Apr 2026 Bank Average |
|---|---|---|
| USD/CAD | 1.35 – 1.39 | Gradual CAD strengthening |
| EUR/CAD | 1.58 – 1.64 | Mostly range-bound |
| GBP/CAD | 1.80 – 1.86 | Mild downside |
USD/CAD Forecast - April 2026
USD/CAD is expected to remain range-bound in the near term, trading close to current levels around 1.39. Short-term upside risks remain tied to:
- Sticky US inflation
- Elevated US yields
- Safe-haven demand linked to geopolitical uncertainty
However, Canadian bank forecasts continue to point toward gradual CAD appreciation into late 2026, as:
- Rate differentials begin to narrow
- Market expectations for Fed easing increase
- Risk sentiment stabilize
USD/CAD Forecasts - April 2026
| Bank | Apr 2026 | Q2 2026 (forecast) | Q3 2026 (forecast) | Q4 2026 (forecast) |
|---|---|---|---|---|
| RBC | 1.39 | 1.37 | 1.35 | 1.33 |
| CIBC | 1.39 | 1.36 | 1.35 | 1.34 |
| BNS | 1.40 | 1.37 | 1.34 | 1.33 |
| TD | 1.39 | 1.37 | 1.35 | 1.34 |
| BMO | 1.39 | 1.37 | 1.35 | 1.33 |
| Average | 1.39 | 1.37 | 1.35 | 1.35 |
EUR/CAD Forecast - April 2026
EUR/CAD is expected to trade in a relatively tight range, reflecting weak growth dynamics in both the Eurozone and Canada. The euro remains under pressure due to:
- Sluggish economic growth
- Soft industrial output
- Expectations for gradual ECB easing
At the same time, CAD weakness is limited by commodity support and stabilizing conditions. As a result, EUR/CAD is expected to remain stable in the near term, with a modest downside bias into late 2026.
EUR/CAD Forecasts - April 2026
| Bank | Apr 2026 | Q2 2026 (forecast) | Q3 2026 (forecast) | Q4 2026 (forecast) |
|---|---|---|---|---|
| RBC | 1.60 | 1.58 | 1.57 | 1.56 |
| CIBC | 1.62 | 1.64 | 1.62 | 1.60 |
| BNS | 1.60 | 1.59 | 1.60 | 1.58 |
| TD | 1.61 | 1.61 | 1.60 | 1.60 |
| BMO | 1.60 | 1.60 | 1.59 | 1.58 |
| Average | 1.61 | 1.60 | 1.60 | 1.59 |
GBP/CAD Forecast - April 2026
GBP/CAD remains supported in the near term by relatively resilient UK economic conditions and delayed expectations for Bank of England rate cuts.
However, Canadian bank forecasts suggest that GBP/CAD will gradually trend lower into late 2026, as the Canadian dollar stabilizes and global conditions improve.
GBP/CAD Forecasts - April 2026
| Bank | Apr 2026 | Q2 2026 (forecast) | Q3 2026 (forecast) | Q4 2026 (forecast) |
|---|---|---|---|---|
| RBC | 1.85 | 1.84 | 1.83 | 1.82 |
| CIBC | 1.87 | 1.89 | 1.87 | 1.85 |
| BNS | 1.83 | 1.82 | 1.82 | 1.81 |
| TD | 1.85 | 1.85 | 1.85 | 1.85 |
| BMO | 1.84 | 1.84 | 1.83 | 1.82 |
| Average | 1.85 | 1.85 | 1.84 | 1.83 |
Written by
Michael Watt
Foreign Exchange SpecialistMichael Watt is a Senior Corporate FX Specialist at MTFX, supporting Canadian businesses with strategic foreign exchange solutions and efficient cross-border payment workflows. With extensive experience in global financial services and client advisory roles, he helps companies improve international payment efficiency, reduce FX costs, and navigate currency market volatility. Michael brings a strong background in relationship management, business development, and international finance.
