USD/CAD to surge as Brent crude heads to $50 by 2026 per Goldman

USD/CAD is positioned for significant appreciation as Goldman Sachs projects Brent crude oil prices to collapse to the low $50s by 2026, potentially weakening the commodity-linked Canadian dollar. The investment bank forecasts a massive oil supply surplus averaging 1.8 million barrels per day from Q4 2025 through Q4 2026, resulting in global inventory buildup of nearly 800 million barrels. This bearish oil outlook could pressure CAD given Canada's substantial energy exports, while supporting USD strength. The projected 30-40% decline in oil prices from current levels near $85 would likely trigger Bank of Canada dovishness to support the economy. Technical traders should monitor key USD/CAD resistance at 1.3650 and 1.3800 levels as the pair builds bullish momentum. Oil-sensitive pairs including NOK and MXN crosses may face similar headwinds.