- USD/CAD weakens to near 1.3805 in Monday’s early European session.
- The US Secretary of State said, “Either reach a good deal with Iran or handle it differently.”
- Cooling domestic inflation and economic weakness in Canada might cap the Canadian Dollar’s upside.
The USD/CAD pair edges lower to around 1.3805 during the early European session on Monday. The US Dollar (USD) softens against the Canadian Dollar (CAD) after US officials signal progress on a peace deal with Iran. Trading volumes are expected to be light due to a market closure for Memorial Day in the US.
Reuters reported on Monday that US Secretary of State Marco Rubio said that the US will give diplomacy every chance on Iran but will pursue other means if a good deal cannot be reached while describing the current framework as solid. Rubio stated that a deal to end the war with Iran is still possible on Monday.
On Sunday, US President Donald Trump said that Washington and Iran had “largely negotiated” a memorandum of understanding on a peace deal that would reopen the Strait of Hormuz.
Although global oil prices remain elevated, the commodity-linked Loonie failed to capitalize. Concerns over underlying domestic economic growth could offset typical commodity-driven tailwinds.
Traders brace for the US Personal Consumption Expenditures (PCE) Price Index report on Thursday for fresh impetus. In case of hotter-than-projected outcomes, this could underpin the Greenback against the CAD in the near term.
