The Canadian dollar is slightly gaining in value as investors wait for the CPI and FOMC minutes

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At the time of writing on Monday, USD/CAD was trading around 1.3740, down a slight 0.05% on the day. The decline in the value of the US dollar (USD) against its main competitors is weighing on the pair following signs of easing geopolitical tensions in the Middle East.

The US dollar is weakening following comments from a spokesman for the Iranian Ministry of Foreign Affairs, who confirmed that talks with the United States (US) are continuing through Pakistani mediators. According to the same source, Tehran continues to focus on de-escalation of the conflict, and technical talks are underway with Oman regarding the security of the Strait of Hormuz.

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This improvement in market sentiment reduces demand for safe-haven assets such as the US dollar. The US Dollar Index (DXY), which measures the dollar against a basket of major currencies, is falling towards 99.10 after hitting intraday highs near 99.40 earlier in the day.

The Canadian dollar (CAD) is also finding subtle support as oil prices stabilize, despite a correction in West Texas Intermediate (WTI) crude oil prices from recent highs in May. As Canada remains a major exporter of crude oil, energy prices continue to have a significant impact on the Canadian currency.

As Canadian markets were closed on Monday for Victoria Day, trading volume remains relatively airy. Investors are currently paying attention to upcoming key macroeconomic publications. Canadian Consumer Price Index (CPI) data for April will be released on Tuesday and could impact expectations for the Bank of Canada (BoC).

On the US side, investors will also focus on the release of Federal Open Market Committee (FOMC) meeting minutes on Wednesday, as markets look for further guidance on the future path of monetary policy from the Federal Reserve (Fed).

Today’s US dollar price

The table below shows the current percentage change of the United States Dollar (USD) against the major listed currencies. The US dollar was strongest against the Japanese yen.

USD EUR GBP JPY BOOR AUD NZD CHF
USD -0.19% -0.53% 0.05% -0.07% -0.21% -0.47% -0.22%
EUR 0.19% -0.36% 0.26% 0.11% -0.04% -0.29% -0.04%
GBP 0.53% 0.36% 0.62% 0.46% 0.33% 0.07% 0.32%
JPY -0.05% -0.26% -0.62% -0.16% -0.28% -0.57% -0.30%
BOOR 0.07% -0.11% -0.46% 0.16% -0.13% -0.40% -0.14%
AUD 0.21% 0.04% -0.33% 0.28% 0.13% -0.25% 0.02%
NZD 0.47% 0.29% -0.07% 0.57% 0.40% 0.25% 0.26%
CHF 0.22% 0.04% -0.32% 0.30% 0.14% -0.02% -0.26%

The heat map shows the percentage changes of the major currencies relative to each other. The base currency is selected from the left column and the quote currency from the top row. For example, if you select the US dollar from the left column and move along the horizontal line to the Japanese yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

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