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USD/CAD pares losses as Oil slides below $90 on US-Iran talks optimism

  • USD/CAD pares some part of earlier losses as easing Oil prices weigh on the Canadian Dollar.
  • US-Iran talks optimism lifts sentiment, keeping the US Dollar under pressure
  • Softer US PPI data adds to USD weakness, capping upside in the pair

USD/CAD trims some of its earlier losses on Tuesday as easing Oil prices on renewed US-Iran talks optimism weigh on the commodity-linked Canadian Dollar (CAD), helping the pair recover from intraday lows even as improving risk sentiment keeps the US Dollar (USD) under broad pressure.

At the time of writing, USD/CAD is trading around 1.3761 after hitting a low of 1.3731, its lowest level since March 24. Meanwhile, the US Dollar Index (DXY), which tracks the Greenback’s value against a basket of six major currencies, is trading around 98.00, its lowest level since March 2.

The latest move comes as investors grow increasingly optimistic that the current two-week ceasefire could be extended or potentially made permanent. US President Donald Trump told The New York Post that talks with Iran “could be happening over the next two days” in Pakistan. This follows his earlier remarks that Washington had been approached by “the right people” in Iran, even after the US implemented a naval blockade targeting Iranian ports that took effect on Monday.

However, uncertainty remains elevated as key disagreements, particularly over Iran’s nuclear program, continue to complicate negotiations. Tensions around the Strait of Hormuz also persist, limiting a meaningful decline in Oil prices. Still, hopes that talks could resume have helped ease fears of an immediate escalation.

At the time of writing, WTI Crude Oil is trading around $89 per barrel, extending losses for a second consecutive day and down more than 4%. Any clear signs of de-escalation could push Oil prices lower and further weigh on the Canadian Dollar.

Lower Oil prices could ease pressure on the Federal Reserve and the Bank of Canada to tighten monetary policy amid rising inflation risks. Chicago Fed President Austan Goolsbee said on Tuesday that inflation expectations remain broadly anchored, but warned that prospects for rate cuts in 2026 could diminish if inflation does not show clear signs of easing.

On the data front, the US Producer Price Index (PPI) data for March came in softer than expected. The headline PPI rose by 0.5% MoM, below market expectations of 1.2% and unchanged from the previous reading of 0.5%, which was revised down from 0.7%. On an annual basis, PPI increased by 4.0%, missing forecasts of 4.6% and easing from the prior 3.4%.

Canadian Dollar Price Today

The table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies today. Canadian Dollar was the strongest against the US Dollar.

USD EUR GBP JPY CAD AUD NZD CHF
USD -0.29% -0.44% -0.37% -0.23% -0.48% -0.66% -0.37%
EUR 0.29% -0.15% -0.07% 0.06% -0.20% -0.39% -0.09%
GBP 0.44% 0.15% 0.09% 0.21% -0.05% -0.23% 0.06%
JPY 0.37% 0.07% -0.09% 0.15% -0.11% -0.29% 0.00%
CAD 0.23% -0.06% -0.21% -0.15% -0.26% -0.42% -0.14%
AUD 0.48% 0.20% 0.05% 0.11% 0.26% -0.18% 0.11%
NZD 0.66% 0.39% 0.23% 0.29% 0.42% 0.18% 0.29%
CHF 0.37% 0.09% -0.06% -0.01% 0.14% -0.11% -0.29%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Canadian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CAD (base)/USD (quote).

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