CAD Holds Gains vs USD Amid Oil Rebound and Fed Rate Hike Bets Fade

The Canadian Dollar (CAD) has maintained its gains against the US Dollar (USD) as crude oil prices have rebounded from a three-week low. The USD/CAD pair is currently trading below the 1.4000 psychological mark, with bears awaiting a break before positioning for further losses.

The recovery in oil prices has underpinned the CAD, which is closely linked to commodity prices. However, investors remain hopeful about a potential US-Iran peace deal, keeping the USD on the defensive and making it difficult for the pair to attract meaningful buyers.

Traders are cautious ahead of the crucial monthly jobs reports, including the US Nonfarm Payrolls (NFP) report and Canadian employment data. The mixed fundamental backdrop suggests that it may be prudent to wait for some follow-through selling before positioning for a resumption of the USD/CAD pair's downfall.