The pair remains elevated around 1.4070 as declining crude prices weigh on the Loonie despite reduced safe-haven USD demand.
The USD/CAD pair extends its four-day uptrend, trading near 1.4070, a level last seen a week ago. The move reflects pressure on the Canadian dollar from a nearly four-week low in crude oil prices, driven by hopes of a US-Iran deal to reopen the Strait of Hormuz.
Recent comments from US Treasury Secretary Scott Bessent suggested a potential agreement by Wednesday, easing geopolitical tensions and reducing demand for the safe-haven USD. However, weaker oil prices also temper inflation concerns, limiting expectations for further Federal Reserve rate hikes despite signs of labor market strength.
Traders remain cautious as the pair lacks strong bullish momentum, with support near sub-1.4000 levels, the lowest since June 17.