- March 5, 2026
- Posted by: EWGFX
- Category: news
The USD/CAD pair trades flat at around 1.3645 during the European trading session on Thursday. The Loonie pair consolidates as the recovery move in the US Dollar (USD) after a slight correction has offset the strength in the Canadian Dollar.
As of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.2% higher to near 99.00.
The USD Index began correcting after posting a fresh three-month high of 99.67 on Tuesday, following a report from the New York Times (NYT) that signaled Iran’s willingness to talk about ending the conflict with the United States (US). However, Tehran denied the reports and threatened a prolonged war, which appears to have revived demand for safe-haven assets.
In addition to reviving risk-off bets, upbeat US ADP Employment and surprisingly strong ISM Services PMI data for February.
The ADP reported that the US private sector created 63K fresh jobs in February, significantly higher than 50K estimates and the prior reading of 11K. Meanwhile, the ISM report showed that the Services PMI arrived higher at 56.1, while it was expected to come in lower at 53.5 from 53.8 in January.
Though the Canadian Dollar (CAD) trades flat against the US Dollar amid Middle East conflicts, the former trades firmly against other peers amid higher oil prices. Given that Canada is the largest exporter of oil to the US, higher oil prices are a favorable situation for the Canadian Dollar.