USD/CAD extends advance as geopolitical risks keep US Dollar supported
The post USD/CAD extends advance as geopolitical risks keep US Dollar supported appeared on BitcoinEthereumNews.com.
The Canadian Dollar (CAD) stays on the back foot against the US Dollar (USD) on Thursday, as rising Middle East tensions and ongoing uncertainty around US-Iran negotiations keep the Greenback firmly supported across the board. At the time of writing, USD/CAD is trading around 1.3848, marking its highest level since January 20 and building on gains for a fourth consecutive day. Iran has rejected a proposed 15-point plan put forward by the United States aimed at ending the conflict, stating that any agreement would be on its own terms and only once its key conditions are met, including security guarantees and recognition of its strategic control over the Strait of Hormuz. The pushback has raised concerns about a prolonged conflict, with Press TV citing the Iranian Army as warning that any ground incursion would be “more dangerous and costly” for the United States. The remarks come amid reports of additional US troop deployments to the region. Meanwhile, US President Donald Trump reiterated that negotiations were ongoing despite Iran’s public denial. In a Truth Social post, he said Iranian negotiators were “begging” for a deal, while warning that time was running out for a diplomatic resolution, adding that there may be “no turning back.” With both sides maintaining a hardline stance, a near-term resolution appears unlikely, raising the risk of a prolonged conflict and broader economic spillover effects. Oil prices remain volatile and well above pre-conflict levels, raising inflation expectations and complicating the monetary policy path for both the Federal Reserve (Fed) and the Bank of Canada (BoC). While both the United States and Canada are net Oil exporters and can benefit from higher prices, a sustained rise in Oil can also hurt demand. Higher energy costs reduce consumers’ spending power and can slow economic growth. Policymakers are closely tracking the…
Filed under: News - @ March 26, 2026 4:28 pm