Commodities
USD/CAD Soars as Oil Prices Decline Amid US-Iran Diplomacy Hopes
The USD/CAD pair continues its strong uptrend as it trades around 1.4070-1.4075, near its highest level since July 29.
The recent decline in crude oil prices has undermined the commodity-linked Loonie and acted as a tailwind for the USD/CAD pair, with West Texas Intermediate (WTI) dropping to an over two-week low amid reviving hopes for a diplomatic resolution to end the US-Iran war.
Iran reportedly offered to unblock the Strait of Hormuz in return for a US military de-escalation, easing supply concerns as Saudi Arabia works to restore a key export route. Sliding oil prices have alleviated immediate fears of runaway inflation and kept US bond yields depressed below multi-year highs.