Canadian Dollar regains lost ground amid higher Oil prices, US midterm elections
The Canadian Dollar (CAD) is taking back some losses against the US Dollar (USD) on Tuesday, favoured by a moderate rebound in Crude prices, as the US resumed hostilities in Iran.
The Canadian Dollar (CAD) has regained some of its lost value against the US Dollar (USD) due to a moderate increase in oil prices and uncertainty surrounding the US midterm elections. The USD/CAD pair fell below 1.3960 from its session highs near 1.4000 and approached its seven-week low of 1.3941. Brent Oil prices surged about 2.8%, reaching over $106.00, after reports of the US military launching "defensive" strikes in Iran's Qeshm island, raising doubts about the future of peace talks.
Analysts at TD Securities predict a "higher for longer" pricing regime for Brent crude, with medium-term fair value hovering around $90-100/bbl post-conflict. Elevated oil prices provide support to the Loonie, as it is Canada's main export. The Bank of Canada Governor Tiff Macklem's upcoming speech will provide further insights into the BoC's interest rate policies.
The CAD's value is influenced by factors such as interest rates, oil prices, economic health, inflation, and trade balance, as well as market sentiment and the health of the US economy.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
