Canadian Dollar eases from one-month top vs. firmer USD; surging Oil prices limit losses
The USD/CAD pair rebounds from the vicinity of mid-1.3500s, or a nearly one-month low touched during the Asian session on Monday, though it lacks follow-through buying. Spot prices struggle to build on the bounce beyond the 1.3600 mark amid mixed fundamental cues, which warrants some caution for bullish traders.
The escalating Middle East conflict offsets Friday's dismal US Nonfarm Payrolls (NFP) report and lifts the safe-haven US Dollar (USD) to a fresh high since November 2025. Furthermore, a surge in Crude Oil prices fuel inflation concerns and forces investors to push back their expectations about the likely timing of the next rate cut by the US Federal Reserve (Fed), and continues to push the US Treasury bond yields. This provides an additional boost to the Greenback, which, in turn, is seen as a key factor acting as a tailwind for the USD/CAD pair.
Meanwhile, Crude Oil prices surged over 25% intraday, beyond the $110 mark, to a nine-month peak on Monday amid concerns about supply disruptions from the Strait of Hormuz. This is seen underpinning the commodity-linked Loonie and acting as a headwind for the USD/CAD pair. Moreover, Friday's break below a multi-week-old trading range support makes it prudent to wait for strong follow-through buying before confirming that spot prices have formed a near-term bottom and before positioning for any meaningful recovery.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Dell executive: "Agent AI" is different this time, key components (mainly memory and HDD) shortages may last for more than 5 years
Dell Technologies Chief Operating Officer Jeff Clarke stated that proxy AI, by taking on more tasks, continues to drive up computing and storage demands, making this AI infrastructure cycle distinct from traditional hardware upgrade cycles. By 2030, data center computing power is expected to increase by 200 GW, inference token generation will grow 87-fold, and infrastructure demand is likely to continue expanding.
Morgan Stanley Backs Meta (META.US): Muse Ecosystem Continues to Expand, VR Glasses Expected to Become a New Growth Point in 2027
Morgan Stanley maintains an "Overweight" rating on Meta with a target price of $775, and continues to list it as a top pick.
Essay: The Next Step in AI Investment—Who Can Turn Computing Power into Profit?
Meta (META.US) surged 36% in September: Muse validates AI strategy, market cap targets $2 trillion
Meta's stock is on track to achieve its best monthly performance since July 2013, and is only about a 1% increase away from joining the $2 trillion market cap club.
Crypto prices
More
