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USD/CAD rises for second straight day as safe-haven demand lifts dollar

The pair trades near 1.4020 amid higher US Treasury yields and renewed concerns the Fed could raise rates in September.

Reported · Written up by our desk · Major Pairs

USD/CAD extended gains for a second straight session, trading around 1.4020 during Asian hours Friday, with the US dollar supported by revived safe-haven demand, FXStreet reports.

FXStreet links the move to geopolitical uncertainty in the Strait of Hormuz and to market doubt over progress toward fully reopening the shipping corridor.

The dollar strength also reflects rising US Treasury yields and rebounding oil prices, which have reignited expectations that the Federal Reserve could raise rates next month.

FXStreet adds that traders are watching the July Nonfarm Payrolls report for clues on the Fed’s path, while the CME FedWatch Tool shows a 54.5% probability of a 25-basis-point hike in September, down from 63.4% a week earlier.

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