Geopolitical optimism weighs on oil prices, pressuring the Canadian Dollar as the USD strengthens.
The USD/CAD pair climbed to 1.3750 during Tuesday’s Asian session, reversing a modest pullback from near one-month highs around 1.3765. A stronger U.S. Dollar drove the move, while hopes for de-escalation in Iran capped oil prices, weakening the commodity-linked Canadian Dollar.
The pair had retreated slightly on Monday after reaching its highest level since mid-June. Market sentiment remains cautious ahead of key economic data later this week, which could influence Federal Reserve policy expectations.
No immediate market reaction was reported beyond the currency pair’s movement.