Geopolitical tensions drive crude prices higher, supporting the CAD amid USD weakness near 1.4175 in early trading.
The USD/CAD pair retreated to 1.4175 in early European trading Wednesday, pressured by a rise in crude oil prices. Renewed US military strikes against Iran boosted oil markets, strengthening the commodity-linked Canadian dollar. Canada’s status as a major oil exporter amplifies the Loonie’s sensitivity to crude price movements.
Technical indicators suggest the pair retains a bullish bias, holding above the 20-period moving average and the 100-day moving average. The Relative Strength Index at 66 signals upside momentum without overbought conditions, leaving room for further gains. Analysts note geopolitical tensions remain contained, avoiding escalation into broader conflict.
Markets are monitoring the pair’s next resistance at the June 24 high as oil-driven CAD strength competes with USD resilience.