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USD/CAD slips for a fourth day as crude steadies near $84.10

WTI crude stabilized around $84.1 per barrel as prospects for a US-Iran deal dimmed, supporting CAD even as Fed hike odds fell to 36.6% from 48.4% a week earlier.

Reported · Written up by our desk · Major Pairs

USD/CAD extended losses for a fourth straight session, trading around 1.3870 in European hours on Tuesday, as the Canadian dollar drew support from firmer oil prices, according to FXStreet.

West Texas Intermediate crude stabilized around $84.10 per barrel after two consecutive sessions of gains. FXStreet said oil could keep rising if hopes for a US-Iran deal fade, pointing to President Donald Trump saying he has no interest in extending the interim peace agreement, whose June memorandum of understanding set a 60-day window that expired Monday.

Despite oil support for CAD, the downside for USD/CAD may be limited because the US dollar is receiving safe-haven support amid US-Iran geopolitical uncertainty. At the same time, the outlook for Federal Reserve rate hikes has cooled, with CME FedWatch Tool data showing the probability of a hike dropping to 36.6% from 48.4% a week earlier.

FXStreet also cited weaker near-term tightening signals, including an unexpected drop in July nonfarm payrolls and mild consumer inflation, plus Fed commentary from John Goolsbee framing recent tariff and oil-driven price pressures as largely one-off shocks. The piece noted the FXS Fed Sentiment Index fell by 2.36 points to 134.61 and remained above the neutral 100 level, while an FXS Speechtracker score of 4.6 out of 10 suggested a softer, less market-moving impact from the remarks.

Latest closeWTI crude $82.40 ▲1.4%

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