The higher WTI price provides support for the Canadian Dollar.
The Greenback gained traction after Fed officials conveyed hawkish messages on Thursday.
USD/CAD pares its intraday gains, trading around 1.3780 during the Asian session on Friday. However, the pair received upward support as the safe-haven US Dollar (USD) gained traction following news of Israeli missiles striking a site in Iran, exacerbating tensions in the Middle East. However, Iranian media has refuted reports of a foreign attack on Iranian cities, including Isfahan.
According to Reuters, citing Iran’s Fars News Agency, locals reported hearing explosions at the central Isfahan airport. However, the cause of these explosions remains unknown.
The Canadian Dollar receives some support from the higher crude Oil prices, given the fact that Canada is the largest Oil exporter to the United States (US). Western Texas Intermediate (WTI), the US crude oil benchmark, trades around $83.80, by the press time. The prices of crude Oil appreciated as US officials confirmed that Israeli missiles had hit a site in Iran.
On the US Dollar’s front, Federal Reserve (Fed) officials conveyed hawkish messages on Thursday, leading to a surge in US Treasury yields and the US Dollar, consequently, underpinning the USD/CAD pair.
Traders are expected to closely monitor Atlanta Fed President Raphael Bostic, who will speak regarding the US economic outlook at the University of Miami, Florida. Additionally, Chicago Fed President Austan Goolsbee will participate in a moderated Q&A session at the Association for Business Journalists 2024 SABEW Annual Conference in Chicago.
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