USD/CAD Sees Upswing Amid US-Iran Tensions and Pending Economic Data

The US dollar has gained traction against its Canadian counterpart as investors await key economic data from the United States. The USD/CAD pair is currently trading at around 1.4060, up 0.10% for the day.

This comes as the US military launched fresh strikes against Iranian targets in response to surprise missile attacks on American forces based in the Middle East. Escalating tensions between the two nations are fueling worries about disruptions to global energy supplies and supporting crude oil prices.

Analysts at Rabobank note that 'renewed escalation in the Middle East is putting some upward pressure on energy prices again,' with Brent crude having touched $93 per barrel this morning. Meanwhile, the Canadian dollar struggles to attract buyers amid the Bank of Canada's dovish bias and trade war fears.