Canadian Dollar Rises on Peace Deal Hopes

Author: Hasan Korugan

Canadian Dollar Strengthens on Middle East Peace Hopes

The Canadian dollar edged higher against its U.S. counterpart on Monday as hopes rose of a deal to end the war in the Middle East and ahead of a speech by a Bank of Canada policymaker that could offer clues on the interest rate outlook.

Market Movements

The loonie was trading 0.1% higher at 1.3800 per U.S. dollar, after moving in a range of 1.3796 to 1.3823. On Friday, the currency touched a near six-week low.

Analyst Insights

Scotiabank strategists noted that the near-term focus for the CAD remains on relative central bank policy, given the widening interest rate differentials. Canada's 2-year yield was trading about 128 basis points below its U.S. equivalent.

Geopolitical Developments

Iran's top negotiator and foreign minister were in Doha for talks with Qatar's prime minister on a potential deal. Global equity markets rallied, the U.S. dollar fell, and oil prices dropped 6.5%.

Impacted Symbols

Symbols affected by this headline and their sentiment signals

The news, analyses, and comments on this platform do not constitute investment advice. When making investment decisions, you should conduct your own research and consult with a qualified financial advisor if necessary. FiNews cannot be held responsible for any losses that may arise from the use of this information.

More Headlines

Canadian Dollar Rises on Peace Deal Hopes - FiNews