The US dollar is gaining broadly as renewed US-Iran hostilities trigger risk aversion ahead of crucial US PCE inflation data. The Canadian dollar has weakened to new local lows due to both geopolitical sentiment and widening yield spreads.
Key Takeaways
- 1.The USD is strengthening across the board due to renewed geopolitical tensions following reported US strikes against Iranian targets.
- 2.CAD is underperforming, reaching new local lows as a result of risk aversion and widening US-Canada yield spreads.
- 3.Market focus is shifting to heavy North American data releases, specifically the PCE inflation figures, the Fed's preferred metric.
Table of Contents
- Analyst Team
- Overview
- USD Rises On Renewed US/Iran Hostilities
- USDCAD (1.3861)
- USDCAD short-term technicals: Bullish
- TODAY'S CALENDAR
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Authors
Shaun OsborneEric Theoret
Securities
USDCADWTIXAU
Themes
Geopolitical EscalationInflationary PressureYield Spread Divergence
Regions
North AmericaAsia PacificMiddle EastUnited StatesCanadaJapan