USDCAD is falling to new lows

The CAD continues to strengthen ahead of the Bank of Canada and the Federal Reserve rate decisions, with the USDCAD pair testing the 1.3815 level. Discover more in our analysis for 8 December 2025.

USDCAD forecast: key trading points

• Markets await interest rate decisions from the Bank of Canada and the Federal Reserve
• The CAD continues to strengthen
• USDCAD forecast for 8 December 2025: 1.3775

Fundamental analysis

The USDCAD forecast for today is optimistic for the CAD, with the pair edging lower and trading near 1.3815.

On 10 December 2025, the Bank of Canada is expected to announce its key interest rate decision. At this stage, the rate remains at 2.25%. The USDCAD outlook suggests the regulator will act cautiously and may leave the rate unchanged. Canada’s economic indicators support maintaining the current policy, which is a positive signal for the CAD.

This week, the Federal Reserve will also hold its meeting and announce its interest rate decision. Analysts are divided, with some expecting a rate cut, which could further weaken the USD against other currencies and push the USDCAD pair lower. Others consider the possibility that the Fed might raise rates in an effort to support the weakening dollar. In any case, markets anticipate heightened volatility during the Fed and BoC meetings.

USDCAD technical analysis

On the H4 chart, the USDCAD pair formed an Inverted Hammer reversal pattern near the lower Bollinger Band. At this stage, the pair may form a corrective wave following the pattern’s signal. Since the price remains within an ascending channel, an upward correction towards the nearest resistance level at 1.3860 is possible. If the price rebounds from this level, the downtrend may resume.

However, the forecast for 8 December 2025 also considers a scenario in which the price drops directly to 1.3775 without a correction towards the resistance level.

Summary

The news backdrop favours the CAD. The USDCAD technical analysis suggests a continued decline towards the 1.3775 support level.

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