Oil Rebound Drives USD/CAD Down as Iran Peace Deal Hopes Rise

The USD/CAD pair remains on the back foot as oil prices rebounded from an over three-week low, and bets for a US Federal Reserve rate hike continue to fade.

This is underpinning the Canadian Dollar, with investors hopeful about a potential US-Iran peace deal that keeps the US Dollar on the defensive.

A proposed framework for commercial shipping through the Strait of Hormuz between Iran and Oman has added to the optimism, but traders remain hesitant ahead of crucial jobs reports due out this week.