FX.co ★ Canadian Dollar Strengthens to Over 8-Month High

The Canadian dollar surged to its strongest position in over eight months, reaching close to 1.35 against the US dollar in June. This appreciation was influenced by a broad retreat of the US dollar, coupled with a surge in crude oil prices due to escalating tensions between Israel and Iran. The US dollar weakened as traders moved away from typically risk-averse strategies amidst ongoing missile exchanges and looming threats of supply disruptions via the Strait of Hormuz, despite international appeals for peace. The hike in oil prices has significantly bolstered Canada's energy export revenues, providing robust support for the Canadian dollar. Additionally, investors are keenly observing the G7 summit for any coordinated strategies addressing global crises, including those in the Middle East and Ukraine, as well as ongoing trade disputes. This is all unfolding within a significant week of decisions by various central banks. Meanwhile, the Bank of Canada maintains a data-dependent approach to its economic outlook.