USD/CAD Rebounds Near 1.3600 as Oil Prices Dip, G7 Summit in Spotlight

USD/CAD Rebounds Near 1.3600 as Oil Prices Correct, G7 Summit in Focus

USD/CAD Rises on Weak Oil-Linked Canadian Dollar

USD/CAD trades near 1.3600 in Monday's Asian session, recovering from an eight-month low of 1.3566 recorded on June 13. The recovery comes as the Canadian Dollar (CAD)—a commodity-linked currency—loses ground amid a correction in crude oil prices.

Canada remains the largest crude oil supplier to the United States, and with the US being the biggest global oil consumer, fluctuations in oil directly affect USD/CAD valuations.

WTI Crude Pulls Back from 5-Month High

West Texas Intermediate (WTI) oil fell to around $71.90 per barrel, down from its recent five-month high of $74.74 on June 13. Despite the correction, the drop is being capped by mounting supply disruption fears due to escalating Middle East tensions.

Geopolitical Concerns in the Middle East Fuel Volatility

According to CNN, tensions between Israel and Iran continue to escalate. Iran has reportedly launched ballistic missile strikes targeting Israeli military-industrial zones and fuel storage facilities, according to statements from the Iranian Revolutionary Guard. This conflict keeps oil traders on edge, with volatility expected to persist.

G7 Summit: Trump and Bessent to Host Canadian PM Carney

Traders are also watching the G7 Summit, where US Treasury Secretary Scott Bessent and President Donald Trump are scheduled to host Canadian Prime Minister Mark Carney. The outcome of this high-level meeting could offer further insight into North American economic cooperation and trade outlooks—factors that often influence USD/CAD direction.

Related Links (Internal for Tredu.com)

• USD/CAD Technical Forecast
• WTI Crude Outlook: June 2025
• Latest G7 Economic Highlights

Final Thoughts

As oil markets react to geopolitical instability and macroeconomic events like the G7, USD/CAD remains in focus for forex traders. Keep an eye on energy price shifts and summit outcomes for short-term trading cues.