The currency pair remains subdued amid USD selling pressure and heightened geopolitical uncertainty over US-Iran negotiations.
The USD/CAD pair traded near 1.3836 in European hours, slightly lower as the US Dollar faced selling pressure. The US Dollar Index (DXY) dipped 0.1% to 99.08, reflecting investor caution over stalled US-Iran talks after Iran halted negotiations with Washington via mediators.
The Greenback had strengthened in recent months due to Middle East tensions driving oil prices higher, stoking US inflation concerns and reducing expectations for Federal Reserve rate cuts. Safe-haven demand also supported the USD, though geopolitical risks now appear to be weighing on sentiment.
Investors await US JOLTS Job Openings data for April, due at 14:00 GMT, which could influence Fed policy expectations. Technically, USD/CAD remains above its 20-day EMA at 1.3771, with an RSI of 63 signaling firm but not overbought momentum.