Falling crude prices weigh on the commodity-linked CAD, countering USD softness from easing geopolitical tensions.
The USD/CAD pair climbed to 1.3980 in Asian trading, extending gains for a second day. The move comes despite a potential US-Iran peace deal, which pressured the USD by reducing geopolitical risk.
Support for the USD remained strong after US PPI data showed a 6.5% YoY surge in May, exceeding expectations and marking the highest level since November 2022. Meanwhile, oil prices fell on the prospect of eased Middle East tensions, weakening the CAD.
The pair’s upside may face resistance as diplomatic progress could further sideline the USD, though robust inflation data continues to underpin the Greenback.