USD/CAD trades around 1.3935 on Tuesday at the time of writing, virtually unchanged on the day with a modest 0.03% decline. The pair remains close to its lowest level in two months as the Canadian Dollar (CAD) benefits from higher Oil prices, while the resilience of the US Dollar (USD) limits the downside.
Crude Oil prices remain supported by concerns over supply in the Middle East. The standoff between the United States (US) and Iran is dampening hopes for a swift reopening of the Strait of Hormuz, while shipping traffic through the Bab el-Mandeb Strait remains disrupted. These tensions are fueling concerns about global supply and supporting Oil prices, a generally positive factor for the Canadian Dollar given the significant role of energy in Canada’s exports.
Geopolitical tensions remain elevated after Iran ruled out the prospect of further negotiations with US President Donald…
