- 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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.