USD/CAD remains limited below 1,3700 with the Canadian dollar favored by a better market feeling

• The Canadian dollar cuts some losses, favored by a somewhat more optimistic market feeling.
• The US dollar lost impulse after Trump postponed his decision to attack Iran.
• The widest USD/CAD is still bassist after a fall of almost 2% in the last four weeks.

The Canadian dollar is quoting upwards in front of a weaker USD on Monday, cutting losses after a massive three -day sale, since a more optimistic market feeling, along with high oil prices, presents a more favorable context for the CAD.

The president of the United States, Donald Trump, calmed the fears of the investors earlier today, stating that he will take two weeks to decide if he is involved in the conflict of the Middle East, which has increased the hopes that a negotiated way of ending the conflict is still possible.

The US dollar was appreciated almost 1% in the last three days, favored by its traditional status of safe refuge in a security search amid speculation about an imminent American attack on Iran, which would climb the conflict to a large -scale regional war.

High oil prices are supporting CAD

However, the most optimistic market feeling has failed to undermine oil prices, which remain stable close to the level of 75% amid fears that the conflict interrupts the supply of crude oil. Canada is one of the world’s main oil exporters, and the Canadian dollar tends to be appreciated along with crude oil prices.

Later today, Canadian retail sales are expected to show that consumption slowed 0.4% in May from 0.8% in April, although excluding cars, sales of all other products increased 0.2% after a contraction of 0.7% in the previous month.

The widest USD/CAD trend remains bassist. The PAR has lost almost 3% in the last four weeks and is quoting almost 5% below April’s maximum, since Trump’s commercial erratic political erratic has caused the US dollar to collapse in front of its main peers.