Firming crude prices near $84.10 per barrel support the CAD, pressuring the USD/CAD pair amid US-Iran geopolitical tensions.
USD/CAD declined for a fourth straight session to 1.3870 in European trading on Tuesday, driven by a stronger Canadian Dollar as oil prices firmed. West Texas Intermediate crude stabilized around $84.10 per barrel after two days of gains, supported by fading prospects for a US-Iran deal following the expiration of a 60-day negotiation window.
Brent crude extended its rally to $91.85 per barrel, its highest level in over three weeks, as tensions in the Strait of Hormuz persisted. Analysts suggest crude prices will remain a key driver of geopolitical narratives, with Brent expected to trade within a $70 to $100 range.
Despite safe-haven demand bolstering the USD, the Greenback faces headwinds from broader market expectations, limiting further downside for USD/CAD.