Canadian dollar not getting a bump as Iran war winds down. Eyes on USMCA

USD/CAD pulls back into a major trendline ahead of the BoC and Fed decisions. What's next?

The desk believes that USD/CAD is poised for a potential rally, especially as the market anticipates the outcomes of both the BoC and FOMC meetings. Per the full note [source], the US dollar has regained strength due to geopolitical tensions affecting oil prices, which could compel the Fed to adopt a more hawkish stance. With the BoC likely to maintain its cautious approach, the CAD may struggle to gain traction. The consensus target for USD/CAD sits at 1.075, with significant events on the calendar that could influence market dynamics.

The Commodities Feed: Oil surges as peace deal hopes fade

The desk interprets the recent surge in energy prices as a direct consequence of geopolitical tensions, particularly following the US's rejection of Iran's peace proposal. Per the full note [source], this development signals a potential escalation in conflict, which could further tighten oil supplies and drive prices higher. Current consensus among firms suggests a cautious outlook, with targets reflecting a range that accommodates potential volatility in the energy sector. Traders should remain vigilant for any shifts in sentiment that could arise from further diplomatic developments.

USD/CAD Forecast - The US Dollar To Canadian Dollar Exchange Rate Ticks Higher Despite Oil Price Support - Exchange Rates Org UK

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