Loonie Rallies as Oil Prices Rebound and US-Iran Peace Deal Hopes Rise
The Canadian Dollar has maintained its strength against the US Dollar as oil prices rebounded and expectations of a potential US-Iran peace deal gained momentum.
The USD/CAD pair remains under pressure due to the softening of Fed rate-hike bets, which is weighing on the US dollar. The recent missile attacks on Saudi oil tankers in the Red Sea have fueled concerns about supply disruptions through the key route, causing crude oil prices to recover slightly from their three-week low.
The potential US-Iran peace deal and receding Fed rate-hike bets are keeping the US dollar on the defensive, providing a boost to the Canadian Dollar. However, traders remain cautious ahead of the crucial monthly jobs reports, including the highly anticipated US Nonfarm Payrolls (NFP) report on Friday.