Forex

Loonie Halts Rally as Geopolitics, Fed Expectations Weigh on CAD

Guavy AI Editorial Team Published August 12, 2026

Instruments

USD CAD

The Canadian Dollar showed limited upside momentum as it edged higher in Asian trading, halting its three-day decline to around 1.3930.

Firm crude oil prices, bolstered by geopolitical tensions involving Iran and Houthi attacks, continued to support the Loonie and cap gains in USD/CAD.

The upcoming U.S. Consumer Price Index (CPI) release was seen as a key factor for near-term U.S. Dollar demand and USD/CAD direction.

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