Canadian Dollar Update, July 9, 2026 – Canadian Dollar trading sideways

Canadian Dollar trading sideways

• Markets shrugging off latest US-Iran hostilities
• WTI retreats from yesterday’s peak
• US dollar is trading on a mixed to flat note.

USDCAD open: 1.4179, overnight range 1.4153-1.4190, close 1.4172, WTI 73.57, Gold 4,104.87

The Canadian dollar is digesting yesterday’s gains and little changed following the FOMC minutes. The FOMC minutes were roughly in line with expectations rather than skewing more hawkish and that weighed on the greenback. Narrowing CAD/US rate spreads supported the Loonies rally.

WTI has clawed back some ground, rising to 73.82 after touching a low of 72.47 in European trading. Crude remains supported by renewed attacks by the US and Iran. Traders are looking past the latest developments, tech and AI stock price action soaks up all the market’s attention.

The FOMC minutes came and went, and once the initial knee-jerk reactions faded, markets were left largely where they started. The takeaway was familiar: rates could rise further if inflation stays stubborn or fall if it cools. Nothing new there.

Asian markets closed mixed. Japan’s Topix added 0.35%, Australia’s ASX 200 slipped 0.26%, and Hong Kong’s Hang Seng dropped 0.70%.

As o 7:30 am, Germany’s Dax is little changed, France’s CAC has gained 0.32%, and the UK’s FTSE 100 is down 0.69%. S&P 500 futures are flat, the 10-year Treasury yield sits at 4.589%, and the DXY is at 101.01.

EURUSD climbed modestly through a 1.1414-1.1450 band on renewed chatter that the ECB could hike as soon as September, with a pullback in oil prices from yesterday’s peak lending extra support. That said, the ECB hike story feels stale next to a Fed hawkish narrative that still has plenty of room to run, which could cap the euro’s near-term upside.

GBPUSD found a bid in the 1.3385-1.3431 range as the renewed Iran-US clash and heated rhetoric on both sides drove flows. Firmer oil could push the Bank of England toward a hike, though ongoing political uncertainty may keep a lid on gains.

USDJPY held a bid within 162.25-162.62 after the FOMC minutes did little to shake the market’s read on a hawkish Fed. Steady to firm oil prices and Japan’s fiscal policy stance outweighed any lingering intervention risk.

AUDUSD edged up in a 0.6906-0.6947 band, reaching back toward the highs set after last Friday’s soft NFP print. The move was helped along by an uneventful FOMC minutes release and hawkish commentary from RBA officials earlier in the week.