USD/CAD Pair Recovers as US-Iran Standoff and Fed Hikes Support Greenback

The USD/CAD pair has regained some ground after dipping to a nearly two-month low at 1.3925 on Friday.

As investors shift their focus away from the disappointing US Nonfarm Payrolls report, the ongoing US-Iran standoff continues to bolster the safe-haven US Dollar.

Additionally, expectations of interest rate hikes by the Federal Reserve this year due to rising inflation concerns, partly driven by rebounding crude oil prices, are also supporting the Greenback.

The Canadian Dollar, however, may benefit from a strong domestic jobs report released on Friday, which could temper aggressive bullish bets on the USD/CAD pair and limit its upside potential.