Canadian Dollar steadies as Middle East Oil shock caps US Dollar rebound

The Canadian Dollar remains supported by the surge in Oil prices linked to Middle East tensions.
A stronger-than-expected US jobs report provides limited support to the US Dollar.
Markets remain focused on the Strait of Hormuz conflict and its potential impact on global inflation.

Ghiles Guezout FXStreet

USD/CAD trades on a flat note around 1.3670 on Monday, down modestly by 0.05% on the day at the time of writing. The US Dollar (USD) finds some support after Friday’s stronger-than-expected US employment report, but gains in the Canadian Dollar (CAD) are limiting the pair’s upside amid higher Oil prices.

The Bureau of Labor Statistics (BLS) reported that the US economy added 115K jobs in April, compared with 185K in March after revision, beating market expectations of 62K. Meanwhile, the Unemployment Rate remained steady at 4.3%, in line with consensus forecasts. The data reinforced expectations that the Federal Reserve (Fed) could remain cautious regarding additional monetary easing.

MUFG noted that the rebound in the US Dollar is being supported both by persistent geopolitical tensions and by the stronger-than-expected Nonfarm Payrolls (NFP) report. The bank also believes that the latest developments favor the Fed keeping interest rates unchanged.

However, support for the Greenback remains limited by the rally in Crude Oil prices, which continues to underpin the Canadian Dollar. West Texas Intermediate (WTI) price climbs toward $94.60 per barrel after US President Donald Trump rejected Iran’s latest proposal aimed at ending the conflict with Israel and the United States (US).

Israeli Prime Minister Benjamin Netanyahu warned on Sunday that the conflict with Iran was “not over,” fueling fears of renewed escalation in the Middle East. Persistent tensions surrounding the Strait of Hormuz continue to raise concerns over global energy supplies and support commodity-linked currencies such as the Loonie.

OCBC nevertheless noted that the US Dollar remains highly sensitive to shifts in global risk sentiment and Oil price dynamics, even after stronger US economic data. The bank expects the US Dollar Index (DXY) to remain broadly rangebound in the near term.

Canadian Dollar Price Today

The table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies today. Canadian Dollar was the strongest against the Japanese Yen.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		0.08%	0.14%	0.30%	-0.07%	0.00%	0.23%	0.21%
EUR	-0.08%		0.06%	0.19%	-0.18%	-0.07%	0.16%	0.13%
GBP	-0.14%	-0.06%		0.11%	-0.23%	-0.13%	0.09%	0.06%
JPY	-0.30%	-0.19%	-0.11%		-0.34%	-0.23%	-0.03%	-0.06%
CAD	0.07%	0.18%	0.23%	0.34%		0.11%	0.27%	0.28%
AUD	0.00%	0.07%	0.13%	0.23%	-0.11%		0.21%	0.19%
NZD	-0.23%	-0.16%	-0.09%	0.03%	-0.27%	-0.21%		-0.01%
CHF	-0.21%	-0.13%	-0.06%	0.06%	-0.28%	-0.19%	0.00%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Canadian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CAD (base)/USD (quote).

Author

Ghiles Guezout

FXStreet

Ghiles Guezout is a Market Analyst with a strong background in stock market investments, trading, and cryptocurrencies. He combines fundamental and technical analysis skills to identify market opportunities.

AUD/USD bulls regain control above 0.6950 amid USD retreat

AUD/USD regains traction and extends the previous day's bounce from the weekly low, aiming for 0.7000 in Asia on Friday. The overnight pullback in US bond yields keeps the US Dollar below an 18-month high, which in turn offers some support to the pair. Meanwhile, hawkish RBA expectations also keep the major underpinned.

USD/JPY holds gains near 158.00 after Japan's weak Household Spending data

USD/JPY clings to gains around 158.00 after data showed on Friday that Japan's Household Spending fell for the ninth straight month, undermining the Japanese Yen. Meanwhile, the US Dollar remains depressed as the overnight fall in US bond yields counters a hawkish Fed and geopolitical uncertainties, could cap any downside in the pair.

Gold remains range-bound below $4,200

Gold has given up some ground after an initial bullish attempt to reach weekly highs, returning to below the $4,200 mark per troy ounce on Friday. The US Dollar’s strong upside momentum, combined with rising US Treasury yields across the curve, seems to keep further gains in the yellow metal under scrutiny.

Has Bitcoin really escaped the macro forces it was built to fight?

Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?

The Euro is not the sick man of Europe. France's bond market is

EUR/USD remains under pressure, near the 17-month low of 1.1161 reached on Monday. The pair has lost more than 7% since its yearly peak, as concerns over France's public finances increasingly weigh on the single currency. But behind the weakness of the Euro (EUR), the problem does not necessarily lie with the European economy as a whole.