USD/CAD Stalls at 1.4050 as Oil Prices Rebound and US-Iran Talks Remain Uncertain
The USD/CAD pair has struggled to gain momentum today, trading within a narrow range around 1.4050 as oil prices rebound and cap upside for the Canadian Dollar.
The price of crude oil has risen due to uncertainty over US-Iran talks, which has underpinned the commodity-linked Loonie and acted as a headwind for the USD/CAD pair.
Rabobank's Benjamin Picton described the recurring pattern around the Strait of Hormuz as a 'Groundhog Day' for markets, warning that renewed escalation could trigger a rally in oil prices, equities sell-off, and higher bond yields.