CAD Suffers as Oil Prices Fall Amid US-Iran Ceasefire Hopes
The Canadian Dollar is nursing losses as oil prices fall and interest rate spreads widen, favoring dollar buying. However, risk sentiment has improved across global markets after Wall Street surged on strong technology earnings and optimism over a potential US-Iran ceasefire agreement.
According to Axios, Washington is seeking a 60-day temporary arrangement that would route inbound Gulf traffic through Iranian waters and outbound traffic through Omani waters. This has helped WTI retreat into a 74.23-76.40 range.
Canada-US trade talks are also gaining momentum, with Ottawa reportedly willing to cap metal exports in exchange for reducing the current 50% tariff. Washington is pressing for greater access to Canada's dairy market and the removal of provincial restrictions on alcohol imports in eight provinces.