Since the beginning of the year, USD to CAD has been trading roughly at between 1.240 and 1.280 and this morning it is trading close to the middle of that range at 1.256. One factor to watch today is the price of oil. Oil has rallied over 20% this year on optimism about demand and supply tightening by OPEC+. But this morning negotiators from the the countries involved in the Iran nuclear deal are in Vienna to hammer out a possible return to the deal by the US. If those efforts are successful, it would mean an eventual reintroduction of Iranian oil into world supplies which would drive prices down and would put pressure the Canadian dollar. Other than that, the only thing that could really move exchange rates this week is the release of the minutes of the Federal Reserve meeting on Wednesday. That will give us insight into when the US central bank will move to rein in monetary stimulus programs.
