The US Dollar is approaching year-to-date lows at 1.3565 against the Canadian Dollar. Demand for safe havens is decreasing. Higher oil prices are supporting the Canadian Dollar.
Markets are hopeful about the upcoming Trump-Carney meeting. They hope for progress on a tariff deal. The USD/CAD pair’s recovery attempt during Monday’s early trade couldn’t stay above the 1.3600 level.
The pair gave back gains due to broad-based US Dollar weakness. It is approaching eight-month lows at 1.3565. The Greenback started the week on a moderate positive note.
It managed to reduce some losses, helped by a big reversal in oil prices. The US Benchmark WTI (West Texas Intermediate) corrected 3% lower on early trading. It retreated from $75.00 to just above $71, which put pressure on the oil-sensitive Canadian Dollar.
Usd/cad approaches eight-month lows
The US Dollar is losing ground as safe-haven demand goes down. Tensions between Iran and Israel have eased.
This reduces the need for safe-haven assets. Several countries have offered to mediate the conflict. US President Trump encouraged both sides to reach a deal.
This has helped ease market concerns. Also, a news report over the weekend highlighted that last week’s agreement between the US and China left the key issue of rare earths trade unresolved. This has brought back concerns about tariff uncertainty.
The July 9 deadline for major progress on trade deals is approaching. In Canada, there is some optimism around the planned meeting between US President Trump and Canadian Prime Minister Mark Carney before the G7 summit. The meeting is expected to help bring both parties closer to a trade compromise.
This provides support for the Canadian Dollar.