Canadian dollar edges higher, speculators raise bearish bets to highest since December

The Canadian dollar rose against the U.S. dollar on Monday as a preliminary peace deal between the United States and Iran lifted global risk sentiment. Gains were limited, however, as markets stayed cautious ahead of the Federal Reserve's interest rate decision later this week. The move reflects a modest risk-on bid in FX rather than a fundamentally driven shift in CAD.

Analysis

The Canadian dollar rose against the U.S. dollar on Monday as a preliminary peace deal between the United States and Iran lifted global risk sentiment. Gains were limited, however, as markets stayed cautious ahead of the Federal Reserve's interest rate decision later this week. The move reflects a modest risk-on bid in FX rather than a fundamentally driven shift in CAD.