The Canadian Dollar strengthened as reports of a potential US–Iran ceasefire improved global risk sentiment and weighed on the US dollar. USD/CAD slipped toward 1.3940 as traders reacted to easing geopolitical tensions and reduced safe-haven demand. Optimism around a possible 45-day truce is supporting commodity-linked currencies like the loonie, though markets remain cautious awaiting confirmation.
Trade Idea
Bias: Sell USD/CAD
Reason: Ceasefire hopes weaken USD and support CAD
Plan: Sell on rallies, target lower levels, and monitor geopolitical updates for sudden sentiment shifts