Canadian Dollar seems vulnerable as Iran diplomacy hopes weigh on oil prices
The USD/CAD pair attracts buyers for the third straight day and trades around the 1.4070-1.4075 area during the Asian session on Wednesday, near its highest level since July 29, touched the previous day.
The Canadian Dollar (CAD) appears vulnerable as hopes for improved Iran diplomacy weigh on oil prices, according to FXStreet. The USD/CAD pair has climbed to its highest level since July 29, supported by a strong uptrend and a bullish US Dollar. However, the recent sharp decline in crude oil prices, due to renewed hopes for a diplomatic resolution to the US-Iran war, has undermined the commodity-linked Loonie.
This, combined with a depressed US bond yield environment, could cap the pair's upside potential. Despite this, the USD Index remains near its highest level since July 30, indicating that the path of least resistance for the USD/CAD pair is still to the upside.
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