USD/CAD: Barclays Downgrades Canadian Dollar Outlook Due to Trade Uncertainty

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2026-03-24 13:09:31

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Investing.com - Barclays expects the Canadian dollar to underperform other commodity currencies as trade tensions with the United States put pressure on the economy.

Barclays stated that the renegotiation process of the US-Mexico-Canada Agreement (USMCA) could increase uncertainty in the short term, with limited signs of progress so far, and there is a risk of escalation before a potential deal is reached. The current USMCA will automatically renew on July 1, which is a key milestone.

The institution believes that rising energy prices are currently the main support for the Canadian dollar. This makes the currency more susceptible to easing tensions in the Middle East.

Barclays said that ongoing trade friction with the United States continues to pressure the Canadian economy. The firm expects the Canadian dollar to lag behind other commodity-related currencies.

The institution noted that there is a risk of escalation in the USMCA renegotiation, with limited progress so far.

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