Forex▼ Bearish
US-Canada Trade Talks Collapse, Dollar Rallies on Iran Sanctions
US-Canada trade talks collapsed, sending the loonie to three-month lows, while Treasury Secretary Bessent unveiled new Iran sanctions, rattling oil markets. The euro stalled near $1.17, yen traders watch for intervention at 160, and gold surged to $4,660.
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The dollar climbed across most major peers Monday as two geopolitical flashpoints reshaped the currency landscape. US-Canada trade negotiations broke down acrimoniously, and the Treasury announced a new wave of economic sanctions on Iran, threatening secondary penalties for violators. Equity markets were mixed, bond yields slipped, and oil gave back some of its recent surge.
Canada and the US failed to reach a deal on steel and aluminum tariffs, despite a three-day grace period President Trump granted last week. Trump said a deal was struck. Canadian Prime Minister Mark Carney disagreed, saying progress was made but many issues remained unresolved. The stalemate pushed the Canadian dollar to its weakest level in three months against the greenback. The dollar rose from around CAD1.3730 before the weekend to nearly CAD1.3845, testing the 200-day moving average. Last week's high was just above CAD1.3900.