Canadian Dollar gains ground to near 1.3700 despite Middle East tensions, weak jobs data
The USD/CAD pair trades in negative territory around 1.3710 during the early Asian trading hours on Monday. Traders will closely monitor the situation in the Middle East. Any further escalation or de-escalation in the Strait of Hormuz will directly impact the US Dollar (USD) against the Canadian Dollar (CAD).
US President Donald Trump said on Monday that he is discussing with other countries about policing the Strait of Hormuz. Trump further stated that Israel is collaborating with the US on securing the vital shipping route.
Other countries, such as the UK, Japan, China, and South Korea, stated that they are still considering their options, but without making commitments after Trump urged them to send warships to secure the Strait of Hormuz. Ongoing conflict in the Middle East could fuel a flight to safe-haven currencies like the Greenback against the CAD in the near term.
Disappointing Canadian employment data could weigh on the Loonie and create a tailwind for the pair. Statistics Canada data showed on Friday that Canada's economy unexpectedly lost a net 83,900 jobs in February, while the unemployment rate rose to 6.7% during the same period.
On the other hand, fears of oil supply disruption could boost crude oil prices and underpin the commodity-linked CAD. It is worth noting that Canada is a major oil-exporting country, and high crude oil prices generally have a positive impact on the CAD.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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10:13 AM EDT, 10/08/2026 (MT Newswires) -- Price: 91.10, Change: -2.48, Percent Change: -2.65
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