Market focus shifts to potential US-Iran deal, which may influence oil prices and the commodity-linked Canadian dollar.
The USD/CAD pair remains unchanged at around 1.4015 in early European trading on Thursday. Investors are monitoring developments in US-Iran negotiations, which could impact crude oil markets and the Canadian dollar.
Recent comments from Iran’s Deputy Foreign Minister and US President Donald Trump suggest progress in talks, though no final agreement has been reached. Canada’s status as a major oil exporter ties the CAD closely to energy price movements, with rising tensions typically supporting the currency.
Later Thursday, the US Initial Jobless Claims report may provide additional direction. Hawkish remarks from Federal Reserve officials, including Kansas City Fed President Jeff Schmid, could also bolster the USD in the near term.