Currency & Precious Metals in Review: How 2025’s Volatility Reshaped Canadian FX and What It Signals for 2026
December 19, 2025
As 2025 draws to a close, Canadian businesses, investors, and individuals are reflecting on a year defined by sharp currency swings, geopolitical headlines, and renewed interest in precious metals. From USD/CAD trading at multi-decade extremes to gold and silver reasserting their role as defensive assets, volatility was not an abstract concept. It was something clients navigated in real time, often with material consequences for cash flow, margins, and long-term planning.
At VBCE, with traders supporting clients across the Lower Mainland, Fraser Valley, and beyond, we were on the front lines of this volatility every day. Their conversations with importers, exporters, investors, and high-value personal FX clients tell a consistent story. Uncertainty rewarded preparation, flexibility, and access to timely market guidance.
This year-end review looks back at how clients responded to the defining market forces of 2025, particularly U.S. tariff announcements, interest-rate expectations, and global risk sentiment. It also assesses how well last year’s outlook held up. More importantly, it looks forward to 2026 and highlights the behaviours, strategies, and market dynamics that are likely to shape the year ahead.
Looking Back: Was VBCE’s 2025 Outlook on the Mark?
In our 2024 Year-End MarketWatch Outlook article, VBCE highlighted three core themes for 2025: elevated USD/CAD volatility driven by interest-rate divergence and political risk, increased demand for FX risk-management tools, and renewed interest in precious metals as uncertainty persisted.
As 2025 unfolded, these themes largely proved accurate.
USD/CAD volatility exceeded expectations. Rates traded above 1.40 for extended periods and briefly approached 22-year highs before reversing sharply. Tariff announcements were often introduced, postponed, or walked back. This created headline-driven price action that challenged both importers and exporters. At the same time, gold and silver saw sustained inflows as clients sought protection from currency depreciation and geopolitical risk.
What was harder to predict was how quickly client behaviour evolved. Traders observed a noticeable shift away from waiting for the perfect rate toward more structured approaches such as splitting transactions, setting limit orders, and hedging earlier than in previous cycles. This behavioural change may be one of 2025’s most lasting impacts.
Tariffs, Politics, and the Psychology of Volatility
Few factors influenced client sentiment in 2025 as strongly as U.S. tariff announcements and Canada-U.S. trade tensions. For many clients, it was not just the tariffs themselves. It was the uncertainty around their timing and scope.
“Many clients started taking protective steps, like using forwards to lock in rates and avoid extra costs. They wanted to be ready for anything.” Andres Gallego, Forex & Precious Metals Trader, VBCE South Granville branch
Importers were often forced to act quickly. They front-ran purchases and secured U.S. dollars ahead of potential cost increases. Exporters, meanwhile, hesitated. They were torn between holding out for better rates and meeting near-term domestic obligations.
“As USD prices rose, many businesses were forced to increase prices, which made their customers more cautious and reduced overall purchasing.” Michael McCune, Senior Forex Trader, VBCE Downtown Vancouver branch
“During periods of heightened uncertainty, many clients delayed decisions altogether, which led to hesitation and reduced demand.” Fayyaz Jeshani, Forex Trader, VBCE Downtown Vancouver branch
Several traders noted that volatility peaked early in the year, when tariff deadlines carried the most credibility. As postponements became more frequent, markets began to fade the headlines. This happened only after significant price swings created both risk and opportunity.
USD/CAD in 2025: Extremes, Reversals, and Missed Windows
USD/CAD defined much of the year’s FX narrative. The pair spent months at levels not seen in over two decades. This created divergent challenges for buyers and sellers of U.S. dollars.
“USDCAD at extreme levels presented opportunity, but only for clients who acted. Volatility creates very small windows, and patience matters just as much as timing.” Steve Brown, Senior Corporate Account Executive and Trader, VBCE Downtown Vancouver branch
Clients selling USD, particularly exporters and individuals with U.S. income, took advantage of historically favourable rates and often hedged aggressively. Buyers were forced to decide whether to absorb higher costs or wait for pullbacks that sometimes arrived quickly and sometimes did not.
“Volatility cuts both ways, waiting for a perfect rate usually increases exposure.” Eddy Ngor, Forex and Precious Metals Trader, VBCE Burnaby branch
One of the most common lessons traders reinforced was that volatility does not imply a one-way trend. Some of the year’s largest USD moves reversed sharply. This rewarded clients who acted decisively and penalized those who hesitated too long.
“Clients fear unpredictability, but volatility also brings opportunities.” Kevin Lo, Forex and Precious Metals Trader, VBCE Richmond branch
The Rise of Structured FX Strategies
Compared to previous volatile periods, 2025 stood out for how quickly clients adopted more disciplined FX strategies.
Across client segments, traders reported increased use of split transactions to average exchange rates, limit orders to capture overnight or headline-driven moves, earlier hedging particularly among corporate clients, and rate alerts to stay engaged without constant monitoring.
These tools helped clients reduce emotional decision-making and regain a sense of control in fast-moving markets. This shift suggests a maturing approach to FX risk that is likely to carry into 2026.
Precious Metals: From Opportunistic Trades to Strategic Hedges
While FX volatility dominated headlines, precious metals quietly reasserted their role as portfolio stabilizers.
“With the pace at which gold and silver were rallying, many clients with liquidity were looking to ride the wave, while others focused on hedging given the uncertainty.” Garo Mavyan, Forex and Precious Metals Trader, VBCE Downtown Vancouver Branch
Gold and silver purchases increased steadily throughout the year. Growth came from first-time metals buyers, retail clients seeking inflation and currency hedges, and long-standing metals clients increasing position sizes.
Silver attracted new participants due to its lower entry point. Gold was increasingly viewed as long-term financial insurance rather than a short-term trade.
“Clients stopped seeing metals as opportunistic buys and started treating them as protection against uncertainty.” Brennan Seid, Forex and Precious Metals Trader, VBCE South Granville branch
Importantly, traders emphasized the difference between planned metals allocations and reactive, headline-driven purchases. Clients who approached metals with a long-term mindset were generally more confident and less stressed during price swings.
Who Reacted Fastest and Why It Matters
One of 2025’s more surprising developments was which client segments reacted most quickly to market news.
While importers and exporters were predictably sensitive, many traders observed that high-value personal FX clients were just as responsive. This was especially true for clients involved in real estate or cross-border investments. These clients closely tracked economic releases and often acted decisively to protect large one-time transfers.
Metals buyers also became more engaged. Occasional purchasers turned into regular buyers as uncertainty persisted.
“Many clients moved into metals to avoid the risks of holding USD during uncertain conditions. Once they did, they tended to stay invested rather than trade in and out.” Sarbjeet Kaur, Forex Trader and Branch Manager, VBCE Surrey branch
Looking Ahead: What 2025 Signals for 2026
As traders look toward 2026, several behavioural patterns from 2025 stand out.
Clients are more prepared. Hedging conversations are happening earlier. Rate targets are being discussed before urgency sets in. Metals are increasingly viewed as standing allocations rather than tactical trades.
Expectations are also more realistic. After seeing how quickly markets can reverse, fewer clients are trying to time exact tops or bottoms. The focus has shifted to risk management and consistency.
“You cannot pick the high or the low.” Tony Perler, Forex Trader,VBCE Downtown Vancouver branch
That perspective was echoed across the trading desk. As Eddy Ngor noted, “Uncertainty rewards preparation, and trying to time the absolute top or bottom rarely works.”
Interest-rate divergence is expected to remain a key driver. With markets anticipating further U.S. rate cuts and a more cautious Bank of Canada, many traders see potential for a weaker USD in 2026. Volatility, however, is unlikely to disappear.
What Canadian Businesses and Investors Should Prioritize in 2026
Based on what VBCE traders observed in 2025, several priorities stand out for Canadian businesses heading into 2026.
- Plan FX decisions around major data releases, not during them.
- Use hedging tools proactively, not reactively.
- Treat gold and silver as long-term risk management tools.
- Avoid concentration risk by staggering large transactions.
- Stay informed, but do not trade headlines blindly.
For businesses expanding beyond the U.S., favourable currency relationships and trade agreements such as those under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) may create opportunities in markets like Japan, Australia, and the United Kingdom. VBCE facilitates competitive FX execution in these markets.
VBCE’s Role in a Changing Global Trade Landscape
As Canada looks to expand global trade beyond the U.S., access to efficient and transparent currency exchange will only grow in importance.
VBCE supports this vision by offering competitive FX pricing across major and emerging currencies, tailored hedging strategies for businesses of all sizes, fast settlement and direct trader access during volatile markets, and deep experience guiding clients through uncertainty.
In a year where volatility tested even seasoned market participants, one takeaway stands out. Having a trusted trading partner matters.
Final Thoughts
2025 reinforced a lesson markets teach repeatedly but rarely gently. Volatility is unavoidable, but unmanaged risk is optional. Clients who planned ahead, used available tools, and leaned on informed guidance were better positioned to navigate the year’s extremes.
For Canadian businesses and investors, particularly those operating across Vancouver, the Lower Mainland, and other major trade hubs in BC and Alberta, access to experienced FX guidance remains critical.
As we move into 2026, uncertainty remains, but so does opportunity. At VBCE, our traders remain focused on helping clients exchange, hedge, and invest with clarity, confidence, and perspective, no matter how noisy the headlines become.