Photo by Michelle Spollen on Unsplash

The Canadian Dollar (CAD) found itself getting bolstered even further into the high end to kick off the new trading week, climbing around one-sixth of one percent against the waylaid US Dollar (USD). Broad-market concerns about the still-climbing Middle East conflict acceleration between Israel and Iran are still cooking, as are investor hopes that the scenario will be tempered in the days and weeks to come.

Canada will continue to remain largely absent from the economic calendar until key inflation figures are released at the end of the month. Despite the lack of input from the Canadian side, the Loonie continues to grind its way into fresh multi-month highs against the US Dollar as broader markets hammer the USD.

Daily digest market movers: Investor hopes for Middle East resolution keep the Greenback under pressure

• The Canadian Dollar is extending near-term bullish momentum, sending USD/CAD even further through the 1.3600 handle.
• Israel kicked off a tit-for-tat altercation with Iran last week after targeting Iranian nuclear facilities.
• The two Middle East countries have been lobbing missile barrages at each other for four days.
• Early reporting on Monday suggested Iran was willing to discuss peace solutions, sparking broad-market hopes for a quick resolution.
• Iran was quick to pivot away from the reporting, with a reporter from Qatari-owned Al Jazeera declaring that the early reporting was false.
• The Federal Reserve (Fed) is due to deliver yet another rate hold this week.
• President Trump is expected to continue ramping up antagonistic rhetoric against Fed officials as Trump desperately scrambles for ways to lighten the US’s burgeoning debt load.

Canadian Dollar price forecast

The Canadian Dollar has either closed flat or gained ground against the US Dollar for all but three of the last 12 straight trading sessions. USD/CAD is steadily testing new eight-month highs on a daily basis, and bids are sinking into a descending trendline drawn from multi-decade highs set in February.

Barring any significant changes in global positioning, the Greenback is on pace to continue shedding weight against the Loonie. A technical pullback could be baked into the USD/CAD charts, but a near-term technical ceiling is priced in from the 1.3700 handle.

USD/CAD daily chart

(Click on image to enlarge)

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