USD/CAD on the bids near 1.3450 despite WTI benefits from US-Iran tension, OPEC+ meeting


  • Geopolitical plays and OPEC+ support for production cut helps energy prices.
  • Removal of the US steel and aluminum tariffs from Canada also plays positive for the Loonie.

Even with the escalation in the US-Iran relations and OPEC+ leaders’ firm support for extended production cut favoring crude prices, the USD/CAD pair is trading near 1.3455 at the initial Asian session on Monday.

Relationship between the US and Iran is likely inching towards war after latest reports from the Sky News revealed that a “rudimentary rocket” has been fired into the Green Zone near the US Embassy in Baghdad, Iraq.

On the other hand, the Organization of the Petroleum Exporting Countries (OPEC), Russia and some other non-OPEC oil producers have agreed to extend their previous output cut despite

Geopolitical tensions between the US and Iran during their recent meeting.

Crude is the largest export item for Canada and any positive news reports for the energy front helps the Canadian Dollar (CAD) as well.

Traders are yet to act upon the optimism at Canada due to the US calling back its steel and aluminum tariffs from the nation.

Investors have little to look forward during the day on the economic calendar and hence might keep focusing on the global political for fresh impulse.

It should also be noted that Canadian markets are closed on Monday due to Victoria Day.

Technical Analysis

The 1.3500 round-figure continues to act as an important upside barrier for the USD/CAD pair, a break of which can escalate its recovery to 1.3550 and then to 1.3565 until then 50-day simple moving average (SMA) near 1.3400 and 1.3340 level comprising 100-day SMA could still be on the market radar.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

AUD/USD extends the break above 0.70 on coronavirus vaccine hopes

AUD/USD extends its break above 0.7000, hitting the highest level in five weeks. The pair benefits from the risk-on market mood amid coronavirus vaccine hopes. The bulls remain undeterred by the latest US-China tensions. 

AUD/USD News

EUR/USD hits four-month high of 1.1423

EUR/USD prints a four-month high of 1.1423 in Asia. The pair witnessed a bullish breakout above 1.1349 on Tuesday. The pair closed well above 1.1349 on Tuesday, invalidating the bearish lower high setup created on the daily chart on June 23.

EUR/USD News

USD/JPY: All eyes on BOJ to extend run-up past-107.00

USD/JPY refreshes the intraday high following a U-turn from 107.15. Increasing hopes of virus vaccine follow Wall Street's performance to recall the bulls. News that Tokyo will raise the pandemic to the highest levels, fears of an escalation in the US-China tussle challenge sentiment.

USD/JPY News

Gold: Daily chart shows temporary uptrend exhaustion

Gold's daily chart shows a bearish divergence of the MACD, a sign of uptrend exhaustion. A break below the 10-day SMA could prove costly. The metal looks vulnerable to price pullback.

Gold News

Chart of the Day: DXY

The DXY is in a "bear flag" pattern currently and the target is well below the 94.00 level on a breakdown. However, there is a downtrend line (blue) and if this is broken it will negate the bear flag and turn ...

Read more

Forex MAJORS

Cryptocurrencies

Signatures