Canadian Bank Exchange Rate Forecasts for USD/CAD, EUR/CAD & GBP/CAD
Stay informed with the latest FX forecasts from Canada’s top financial institutions. This page brings you updated USD to CAD forecast, EUR to CAD forecast and GBP to CAD forecast every month. Whether you're managing international business payments, converting funds for global investments, or simply tracking currency movements, these FX forecasts provide valuable guidance.
The Canadian dollar forecast from multiple banks helps you assess the Canadian dollar trend. Will the Canadian dollar go up or struggle to find demand? All your questions answered based on market trends, historical performance and current global conditions. Use this data to identify potential currency risks, unlock better timing for your transfers and optimize your foreign exchange strategy.
Canadian Dollar Forecast - September 2025
September 2025 brings a mixed outlook for the Canadian dollar. Markets are watching closely as the Bank of Canada prepares for another rate cut while the US Federal Reserve weighs the pace of its own easing cycle. Combined with volatile energy prices and tariff risks, these dynamics are shaping expectations for USD/CAD, EUR/CAD, and GBP/CAD.
Below, we break down what five major banks including RBC, TD, CIBC, Desjardins, and Scotiabank, are projecting for this month.
Quick Forecast Snapshot
| Pair | Current Range | 2025 Year-End Forecast |
|---|---|---|
| USD/CAD | 1.36 – 1.38 | ~1.35 |
| EUR/CAD | 1.60 – 1.61 | ~1.60 |
| GBP/CAD | 1.85 – 1.90 | ~1.85 |
USD/CAD Forecast - September 2025
The USD/CAD exchange rate began September near 1.39, after drifting higher in August as weak Canadian GDP data reinforced expectations for BoC rate cuts. Meanwhile, US dollar strength persisted due to sticky inflation and uncertainty over US trade policy.
- RBC: Q3 projection of 1.38, with a path lower toward 1.33–1.31 over the next 12–18 months.
- TD: Forecasts 1.38 this quarter, moderating to 1.33–1.37 through 2026 as CAD strengthens.
- CIBC: Calls for 1.37 in Q3 and 1.36 by year-end, noting tariff effects should fade.
- Desjardins: Warns CAD gains are capped near term, but maintains a 1.35 year-end view.
- Scotiabank: Sees CAD appreciation into 2026, targeting ~1.34 by year-end 2025.
USD/CAD has been trading in a 1.37–1.41 band this summer. Near-term, risks lean toward USD resilience as the BoC cuts first, but banks agree that the loonie could recover by year-end if US growth cools and the Fed delivers further easing.
USD/CAD Monthly Trading Range: 1.37 – 1.41 (Short-term bias: mildly USD-positive; medium-term bias: CAD recovery ahead)
USD/CAD Forecasts - September 2025
| Bank | Sep 14, 2025 Spot | Q4 2025 (forecast) | Q1 2026 (forecast) | Q2 2026 (forecast) |
|---|---|---|---|---|
| RBC | 1.38 | 1.37 | 1.36 | 1.35 |
| CIBC | 1.38 | 1.36 | 1.36 | 1.35 |
| Desj. | 1.38 | 1.35 | 1.37 | 1.35 |
| BNS | 1.38 | 1.34 | 1.32 | 1.32 |
| TD | 1.38 | 1.37 | 1.36 | 1.35 |
| Average | 1.38 | 1.36 | 1.35 | 1.34 |
EUR/CAD Forecast - September 2025
The Euro to Canadian dollar has been steady around 1.60–1.62. Euro strength is supported by the ECB’s slower approach to easing compared to the BoC. However, European growth remains fragile, leaving EUR/CAD vulnerable if confidence wavers.
- TD: Holds EUR/CAD near 1.61 this quarter, stable into 2026.
- CIBC: Forecasts 1.60 in Q3, gradually rising to 1.62–1.63.
- Desjardins: Highlights political and fiscal risks in Europe that could limit upside.
- RBC: Projects a stronger euro as USD/CAD eases, lifting EUR/CAD into 2026.
- Scotiabank: Maintains CAD-positive outlook, limiting EUR/CAD upside versus 2025 highs.
EUR/CAD has been consolidating in a 1.59–1.63 range. A firm ECB stance may keep the euro supported, but any rebound in CAD driven by oil or stronger domestic data could pull the cross lower. Most banks see EUR/CAD holding steady with only modest upward drift.
EUR/CAD Monthly Trading Range: 1.59 – 1.63 (Bias: range-bound; risks tied to ECB tone vs. Canadian oil sensitivity)
EUR/CAD Dollar Forecasts - September 2025
| Bank | Sep 14, 2025 Spot | Q4 2025 (forecast) | Q1 2026 (forecast) | Q2 2026 (forecast) |
|---|---|---|---|---|
| RBC | 1.62 | 1.61 | 1.62 | 1.63 |
| CIBC | 1.62 | 1.62 | 1.63 | 1.63 |
| Desj. | 1.62 | 1.59 | 1.58 | 1.58 |
| BNS | 1.62 | 1.55 | 1.56 | 1.56 |
| TD | 1.62 | 1.63 | 1.63 | 1.62 |
| Average | 1.62 | 1.60 | 1.60 | 1.60 |
GBP/CAD Forecast - September 2025
The pound to Canadian dollar has been resilient, trading in the 1.85–1.90 zone through late summer. UK inflation has proven sticky, limiting the BoE’s ability to cut aggressively, which keeps sterling supported relative to the loonie.
- TD: Sees GBP/CAD at 1.90 in Q3, easing to 1.86–1.88 through 2026.
- CIBC: Holds 1.85 for Q3, steady into 2026, but expects sterling to underperform the euro longer term.
- Desjardins: Notes UK fiscal and political pressures could cap GBP strength.
- RBC: Forecasts GBP/CAD elevated in 2025, before easing as CAD firms.
- Scotiabank: Expects stronger CAD over 12 months, limiting sterling gains.
GBP/CAD has shown strength against the loonie, but risks are two-sided. If UK inflation remains sticky, sterling could stay elevated. However, if oil prices rebound and Canadian growth stabilizes, the pair could ease toward the lower end of forecasts.
GBP/CAD Monthly Trading Range: 1.84 – 1.90 (Bias: firm but capped; risks from UK fiscal politics and BoC/BoE divergence)
USD/CAD: 1.37–1.41 range. CAD weak in the short term but is expected to strengthen by year-end.
EUR/CAD: 1.59–1.63 range. Range-bound with modest euro upside.
GBP/CAD: 1.84–1.90 range. Sterling firm now, but upside limited by UK fiscal risks.
Canadian businesses making international payments or hedging currency risk should prepare for short-term CAD softness in September, particularly against the USD. Strategic use of forward contracts, multi-currency accounts, and rate alerts may help protect margins during this period of volatility.
GBP/CAD Dollar Forecasts - September 2025
| Bank | Sep 14, 2025 Spot | Q4 2025 (forecast) | Q1 2026 (forecast) | Q2 2026 (forecast) |
|---|---|---|---|---|
| RBC | 1.88 | 1.86 | 1.88 | 1.88 |
| CIBC | 1.88 | 1.84 | 1.85 | 1.86 |
| Desj. | 1.88 | 1.78 | 1.75 | 1.76 |
| BNS | 1.88 | 1.88 | 1.89 | 1.89 |
| TD | 1.88 | 1.92 | 1.90 | 1.89 |
| Average | 1.88 | 1.86 | 1.85 | 1.86 |
