USD/CAD undecided in the 1.2950 region as Trump withdraws from the Iran deal

• Trump decides to withdraw the US from the Iran deal as expected. 
• The USD/CAD is struggling to find a clear direction.

The USD/CAD is trading at around 1.2950 up 0.50% on Tuesday as US President Trump decided to withdraw from the Iran nuclear deal as expected. The CAD is mainly correlated to oil prices. 

In his speech, Trump strongly condemned the Iranian regime and the Joint Comprehensive Plan of Action and the USD/CAD initially weakened slightly. 

After Trump officially announced that the US was withdrawing from the Iran deal and sanctions against Iran would be in full effect the USD/CAD started to trade higher but still remain stuck in the 1.2950 and 1.2970 range. 

Earlier in the US session, oil prices plunged as much as 4.4% as before the official speech US officials said that Trump would likely withdraw from the Iran deal. 

Looking back, in 2015, then the Joint Comprehensive Plan of Action (Iran agreement) lifted economic sanctions on Iran and in exchange the oil-producing country would limit its nuclear program and allow inspections of its atomic facilities.