A 0.14% gain in USD/CAD follows a sharp decline in crude prices, easing supply concerns amid US-Iran diplomatic hopes.
USD/CAD climbed to 1.4040, up 0.14% on Monday, as the Canadian Dollar weakened after oil prices fell sharply. The decline followed US President Donald Trump’s announcement that planned military strikes against Iran were canceled, raising hopes for renewed negotiations with Tehran.
Oil prices dropped as supply disruption fears eased, despite Iran’s denial of ongoing talks with Washington. Canada’s status as a major oil exporter ties the Loonie’s performance closely to crude prices, amplifying the currency’s decline.
Investors are now focused on upcoming US economic data, including Monday’s ISM Manufacturing PMI and Friday’s Nonfarm Payrolls report. Canada’s employment data, also due Friday, may add volatility to the USD/CAD pair.