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Dollar rallies as Iran sanctions and US Canada trade tensions boost safe-haven demand
USDCAD logged its best day in two months as tariffs escalated after negotiations broke down, while USDJPY pushed toward 160.
The US dollar staged a three-day rally from its lowest levels since May as risk appetite cooled, currency demand rose for safe-haven assets, and headlines intensified around Iran sanctions and US Canada trade tensions, Action Forex reports.
Washington launched Operation ‘Economic Outcast’ against Iran, including sanctions targeting more than 60 organizations and monitoring of Tehran’s oil smuggling networks. The news initially weighed on Brent after a six-day rally, while the outlet notes long-term isolation of Iran could reduce supplies and lift oil prices.
Action Forex highlights that China purchases about 90% of its oil from Iran, meaning cutting Iran off would be difficult without Beijing’s cooperation, but China’s reluctance to compromise with the US could also renew trade-war risks and slow the global economy.
The outlet also points to moves across the FX and rates complex, including gold easing from recent highs as the dollar strengthened, USDCAD’s best daily performance in two months, USDJPY resuming its upward trend toward 160, and futures pricing an 82% probability of a BoJ rate rise in September.
Latest closeGold $4,432.00 ▲1.6%|Brent $88.59 ▲1.8%