USD/CAD Near 5-Month Lows as BoC-Fed Policy Gap Aids Loonie

Global FX Market Summary: Policy Divergence Lifts Loonie, Gold Consolidates Near Record Highs on Profit-Taking & 2026 Resilience Tempered by Sticky Inflation, 26 December 2025

Fed easing versus BoC boosts Canadian dollar; precious metals surge on geopolitics; 2026 outlook resilient yet cautious amid sticky inflation. The Divergence Trade: Why the North American Policy Gap Favors the Loonie As we drift into the final trading sessions of 2025, the dominant narrative in North American currency markets is no longer just about the strength of the U.S. economy, but rather the starkly different paths being carved by its cent…

USD/CAD Near 5-Month Lows as BoC-Fed Policy Gap Aids Loonie

Forex markets were closed on December 25, and the USD/CAD ratio hardly changed from its five-month low on December 24. Markets were quiet due to holiday trading, and by December 25, when most major exchanges were closed, the pair was at its lowest level since late July, hovering around 1.3675. Due to differing interest rate […] The post USD/CAD Holds Near Five-Month Lows as BoC–Fed Policy Gap Lifts Loonie appeared first on XtremeMarkets.