Canadian Dollar remains near two-month highs against US Dollar as Oil prices rise
USD/CAD trades around 1.3935 on Tuesday at the time of writing, virtually unchanged on the day with a modest 0.03% decline.
The Canadian Dollar (CAD) is trading near two-month highs against the US Dollar (USD), with crude oil prices driving the strength. Oil prices are being supported by worries over Middle East supply, particularly the ongoing US-Iran standoff, which hampers hopes for a rapid reopening of the Strait of Hormuz. Shipping traffic through the Bab el-Mandeb Strait is also disrupted, raising concerns about global oil supply.
Canada's economy appears resilient, with strong employment data bolstering the Loonie. The US Dollar's stability prevents the USD/CAD from falling further, despite a recent disappointing Nonfarm Payrolls report. Investors are closely monitoring upcoming US inflation data from the Consumer Price Index (CPI) and Producer Price Index (PPI) releases, which could influence the Federal Reserve's monetary policy.
Meanwhile, developments in the Middle East continue to impact oil prices, keeping market focus on this region.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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