Forex News: Canadian Dollar Falls As Crude Oil Prices Slump

Canadian Dollar Falls As Crude Oil Prices Slump

(RTTNews) - The Canadian dollar weakened against other major currencies in the European session on Friday, as crude oil prices slumped over 4 percent after U.S. President Donald Trump called off new military strikes on Iran and said a peace deal could be signed in a few days, helping ease fears of escalation.

According to Iran's Mehr News Agency, a memorandum on resolving the conflict consists of 14 points and includes a set of coordinated provisions.

Brent crude futures for August delivery plunged 4.2 percent to $86.56 a barrel, while WTI crude futures for July delivery were down 4.3 percent at $83.95.

U.S. President Trump claimed an agreement to end the war with Iran had been reached and would be signed shortly, possibly in Europe this weekend with Vice President JD Vance attending on his behalf.

Trump also said the Strait of Hormuz would officially reopen once the Iran deal was signed and that Iran will never have a nuclear weapon.

Iran, however, maintained a tough stance and pushed back against optimistic remarks from Trump.

Iranian officials insisted that no final decision has been made and that key differences remain unresolved. In the European trading today, the Canadian dollar fell to nearly a 2-month low of 1.6201 against the euro and a 4-day low of 0.9859 against the Australian dollar, from early highs of 1.6162 and 0.9821, respectively. If the loonie extends its downtrend, it is likely to find support around 1.63 against the euro and 0.99 against the aussie.

Against the U.S. dollar and the yen, the loonie edged down to 1.3996 and 114.42 from early highs of 1.3971 and 114.73, respectively. The loonie may test support around 1.40 against the greenback and 113.00 against the yen.

Looking ahead, Canada capacity utilization data for the first quarter and new motor vehicle sales for April, U.S. University of Michigan's consumer sentiment for June and U.S. Baker Hughes oil rig count data are slated for release in the New York session.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2026 RTTNews.com. All Rights Reserved

Market News provided by RTTNews