Geopolitical risks in the Middle East drive USD demand, pushing the pair to its highest level since mid-April.
The USD/CAD pair climbed for a third straight session, trading near 1.3850 in Asian hours, its highest since April 13. The move extends a breakout above the 200-day SMA, fueled by a stronger USD amid escalating Iran tensions.
The USD Index (DXY) reached a fresh weekly high after the U.S. conducted strikes in Iran, targeting a military site threatening forces and maritime traffic. Iran’s drone interceptions and stalled nuclear talks further weighed on risk sentiment, supporting the greenback.
Rebounding crude oil prices may limit the Loonie’s losses, though traders await key U.S. macro data for direction. The pair’s upside remains capped as markets assess geopolitical risks and economic releases.