US-Iran Tensions Escalate | Canadian Dollar Continues to Trade Below 1.3000
Published January 6, 2020
Tensions escalated between the US and Iran as President Trump said the US had identified 52 Iranian sites it would hit if Iran retaliates. WTI oil prices rose more than a percent on Monday and were trading at $63.69 a barrel.
The Canadian dollar strengthened against the greenback amid the US and Iran war threats and surging crude oil prices. At the time of writing, the Canadian dollar is trading at 1.2970 levels against the US dollar. This week, the market will be closely watching the US nonfarm payrolls report which is due to release on Friday.
Dallas Fed President Robert Kaplan said on Friday that it was too early to guess if there will be a rate hike or a rate cut as a next policy move and added that he was forecasting the economy to grow between 2 percent to 2.25 percent in 2020.
According to the minutes from the Federal Open Market Committee’s monetary policy meeting, many Fed policymakers saw risks to the economic outlook, however, some risks had eased in recent months. This morning the dollar index is trading flat at 96.64 levels.