USD/CAD Price Forecast: Higher Oil prices strengthen Canadian Dollar

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The Canadian Dollar (CAD) trades firmly against its major currency peers, but is flat at around 1.4160 against the US Dollar (USD) during the European trading session on Monday.

The Canadian Dollar rises against its major peers, but flattens against the US Dollar at around 1.4160.
Surging Oil prices due to the Strait of Hormuz closure have strengthened the Canadian Dollar.
Investors await the US CPI and the BoC’s monetary policy announcement.

The Canadian Dollar (CAD) trades firmly against its major currency peers, but is flat at around 1.4160 against the US Dollar (USD) during the European trading session on Monday.

The Loonie outperforms as Oil prices have increased significantly, following the announcement that Iran has closed the Strait of Hormuz, a vital passage to almost one-fifth of the global energy supply, again. As of writing, the WTI Oil price is up 3.75%, above $74.00. Given that Canada is a net energy exporter, higher oil prices bode well for the Canadian Dollar.

Canadian Dollar Price Today

The table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies today. Canadian Dollar was the strongest against the Australian Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		0.09%	0.14%	0.32%	0.06%	0.34%	0.01%	0.03%
EUR	-0.09%		0.06%	0.22%	-0.03%	0.26%	-0.04%	-0.04%
GBP	-0.14%	-0.06%		0.17%	-0.10%	0.22%	-0.08%	-0.06%
JPY	-0.32%	-0.22%	-0.17%		-0.27%	0.03%	-0.27%	-0.23%
CAD	-0.06%	0.03%	0.10%	0.27%		0.30%	0.02%	0.04%
AUD	-0.34%	-0.26%	-0.22%	-0.03%	-0.30%		-0.26%	-0.24%
NZD	-0.01%	0.04%	0.08%	0.27%	-0.02%	0.26%		0.03%
CHF	-0.03%	0.04%	0.06%	0.23%	-0.04%	0.24%	-0.03%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Canadian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CAD (base)/USD (quote).

Over the weekend, Iran announced that the Hormuz would now be closed “until further notice”, as part of retaliation against several attacks from United States (US) military forces on various regions in Iran.

While the Canadian currency outperforms its major peers, it trades sideways against the US Dollar, as the safe-haven demand for the latter has improved amid renewed aggression in the Middle East. In the European trade, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades 0.12% higher to near 101.10.

Going forward, investors will focus on the US Consumer Price Index (CPI) data for June and the Bank of Canada’s (BoC) monetary policy announcement.

USD/CAD technical analysis

USD/CAD trades at 1.4163, holding a constructive near-term bias as it trades above the 20-day Exponential Moving Average (EMA) at 1.4139. The pair is consolidating near recent highs, and the Relative Strength Index (RSI) at around 62 has eased out of overbought territory on the daily chart, suggesting the latest pause is more a cooldown than a clear reversal at this stage.

On the downside, immediate support is seen at the 20-day EMA around 1.4139, which coincides with the November 2025 high that used to be a major resistance for the pair earlier; below that, the June 18 low at 1.4095 is the key support zone. On the upside, the pair could revisit its yearly high at 1.4248 if it breaks above 1.4200.

(The technical analysis of this story was written with the help of an AI tool. Know more.)