Back to the Blog Main Page
17/04/26
15
USD/CAD Holds Near 1.3700 as Oil and Geopolitics Support Canadian Dollar
USD/CAD traded quietly around 1.3700 in Asian trading on Friday, extending its decline for a fifth straight session. The pair remained under pressure as the Canadian Dollar firmed modestly, supported by a small rise in crude prices and Canada’s position as the largest supplier of oil to the United States.
West Texas Intermediate held near $90 a barrel, with prices drawing support from supply concerns. Market attention has focused on developments surrounding ceasefire discussions involving the United States and Iran, which have added to uncertainty in energy markets and helped keep crude elevated.
At the same time, reports of ceasefire violations in Lebanon have reinforced the sense of regional instability. The Lebanese army said it recorded multiple breaches after the truce took effect, while authorities in Lebanon accused Israel of carrying out several acts of aggression. Shelling reportedly affected villages in southern Lebanon, prompting officials to advise residents to delay returning to the area.
President Donald Trump said on Thursday that he had spoken with Lebanese President Joseph Aoun and Israeli Prime Minister Benjamin Netanyahu, adding that Israel and Lebanon agreed to a 10-day ceasefire that began at 5 PM ET. However, the latest reports suggest the truce remains fragile.
USD/CAD found some support on the downside from broader demand for the US Dollar, which has benefited from a cautious market mood ahead of the weekend meeting between Washington and Tehran. Investors remain focused on whether the two sides can make progress toward a more durable ceasefire before the current arrangement expires next week.
For now, the pair is being driven by a balance of forces — firmer oil prices and Canadian Dollar support on one side, and safe-haven demand for the US currency on the other. That has left USD/CAD rangebound, even as geopolitical risks continue to shape sentiment in both currency and energy markets.
Promotions
