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Iran deal reached – USD/CAD climbs towards 1.28

Iran has reached a deal with the US, UK, France, Germany, China and Russia (P5+1) on a deal regrading Iran’s nuclear arms.

The Canadian dollar has been already on the downside, and it now extending its losses with USD/CAD hitting a high of 1.2798.

Apart from  the general  outline of supervision  on facilities for a removal of sanctions, more details are expected at 10:00 GMT. The parties have missed several self-imposed deadlines, and  Iranian officials have even released a premature tweet on a deal.

This time it seems to be for real. Apart from the announcement in Vienna, Obama and Rouhani are expected to talk from their respected capitals later in the day.

The agreement is expected to receive criticism from Israel and US hardliners on one side, as well as Iranian hardliners from the other side.

Less sanctions mean more  Iranian oil on international markets, and this hurts oil  exporting nations. While  Brent Crude Oil is a more relevant benchmark for Iranian oil, this will also have an impact on WTI Oil and  Western  Canada Select.

Tomorrow we have the rate decision by the  Bank of Canada. Goldman expects a dovish surprise from Poloz  but also  sees a technical top on USD/USD.

Here is how the recent rise looks on the chart. The pair extended its gains.  At current levels, we are still below the 2015 high of 1.2834, which was the highest in 6 years.

Canadian dollar down Iran deal July 14 2015

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.