Loonie Holds Near Two-Month Highs as Oil Prices Fuel Geopolitical Tensions
The Canadian Dollar continues to hold near two-month highs against the US Dollar due to rising oil prices. The USD/CAD pair trades around 1.3935, virtually unchanged on the day with a modest 0.03% decline.
Crude oil prices remain supported by concerns over supply in the Middle East, particularly after Iran ruled out further negotiations with US President Donald Trump. According to reports, Tehran intends to wait until Trump's term ends in January 2029 before considering a return to the negotiating table.
The Canadian Dollar also benefits from stronger labor market data released last Friday. Despite the disappointing Nonfarm Payrolls report, investors continue to price in the possibility of a US Federal Reserve interest rate hike by the end of the year.