USD/CAD rebounds from1.2800 as Israel reveals Iran’s nuclear plans

Israel claims to have secret archives of Iran's nuclear program.
Netanyahu hopes that Trump will pull out of the Iranian deal on May 12.

Flavio Tosti Independent Analyst

The USD/CAD is trading at around 1.2824 virtually unchanged on Monday.

The CAD is sensitive to oil prices as the Canadian economy is tightly linked to oil.

The commodity-linked currency appreciated on news indicating that Iran moved its nuclear weapons program to a secret location and Israel has “exact copies” of Iranian nuclear archives, according to a press conference offered by Netanyahu. The Israeli President added that Iran is continually expanding the range of its nuclear-capable missiles and was “brazenly lying” when it said it never had a nuclear weapons program. He went on saying that the Iranian deal failed to address the Iranian’s enrichment in uranium ballistic missiles and nuclear weapon and calling it a “terrible deal”. He concluded his speech by saying that he was certain that Trump “will do the right thing” on May 12.

Earlier in the day, Netanyahu said that he would reveal “significant development” on the Iranian deal with documents suggesting that Iran "cheated the world regarding its nuclear program". The statement took place at 17:00 GMT on Monday and was followed by an emergency meeting of Netanyahu's Security Cabinet. Crude oil got a strong boost from the news.

The USD/CAD is trading sideways on Monday, still within the 1.2810-1.2900 range started last Tuesday. After Netanyahu’s speech, the USD/CAD rebounded from the 1.2810 support level.

USD/CAD 1-hour chart

The market is trading sideways. Supports are seen at 1.2800 and at 1.2752 swing low while resistances are seen at 1.2876 swing high and at 1.2900 cyclical high.

Author

Flavio Tosti

Independent Analyst

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