During the Asian session on Friday, the USD/CAD pair has moderated its intraday gains, hovering around 1.3780. Despite this pullback, the pair found upward momentum as the safe-haven US Dollar (USD) strengthened following reports of Israeli missiles striking a site in Iran, heightening tensions in the Middle East. However, Iranian media has countered these reports, denying any foreign attack on Iranian cities, including Isfahan.
Locals in Isfahan reported hearing explosions at the central airport, as per Iran’s Fars News Agency cited by Reuters. However, the cause of these explosions remains undisclosed.
Meanwhile, the Canadian Dollar found some support from rising crude oil prices, given Canada’s status as the largest oil exporter to the United States. Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around $83.80 at the time of reporting, buoyed by confirmation from US officials regarding the Israeli missile strike on an Iranian site.
On the other hand, the US Dollar received a boost from hawkish statements made by Federal Reserve (Fed) officials on Thursday. This led to a surge in US Treasury yields, further bolstering the USD and providing support to the USD/CAD pair.
Market participants are poised to closely monitor speeches from key Fed officials. Atlanta Fed President Raphael Bostic is scheduled to discuss the US economic outlook at the University of Miami, Florida. Additionally, Chicago Fed President Austan Goolsbee will partake in a moderated Q&A session at the Association for Business Journalists 2024 SABEW Annual Conference in Chicago.
