- USD/CAD slips as the commodity-linked Canadian Dollar strengthens amid a modest rise in oil prices.
- Lebanon’s army recorded multiple Israeli ceasefire violations after the truce took effect.
- The US Dollar Index gains support from safe-haven demand amid cautious sentiment ahead of weekend US–Iran talks.
USD/CAD remains subdued for the fifth consecutive day, trading around 1.3700 during the Asian hours on Friday. The pair inches lower as the commodity-linked Canadian Dollar (CAD) edges higher amid a slight increase in oil prices, given Canada’s status as the largest crude exporter to the United States (US).
West Texas Intermediate (WTI) Oil price holds gains near $90.00 per barrel at the time of writing. Crude oil prices receive support from supply concerns, which could be attributed to the market caution surrounding the United States (US)-Iran ceasefire talks.
CNN reported on Friday that the Lebanese army said that it recorded multiple ceasefire violations by Israel after the truce went into effect. Lebanon accused Israel of committing “several acts of aggression,” saying intermittent shelling has impacted several villages in southern Lebanon. The army urged citizens to delay returning to southern towns and villages in light of the alleged ceasefire violations.
US President Donald Trump said on Thursday that he had spoken with Lebanese President Joseph Aoun and Israeli Prime Minister Benjamin Netanyahu, adding that Israel and Lebanon agreed to a 10-day ceasefire that began at 5 PM ET.
However, the downside of the USD/CAD pair is restrained as the US Dollar Index (DXY) receives support from increased safe-haven demand amid market caution ahead of the upcoming meeting between the United States (US) and Iran scheduled for the weekend.
Washington and Tehran are expected to resume their discussions over the weekend, with President Trump expressing optimism that both nations could secure a permanent ceasefire before it expires next week.
