USD/CAD strengthened for a second session, trading around 1.4270 in Thursday’s
Asian session. Oil’s advance has supported the commodity-linked CAD and may cap
USD/CAD upside. Reports that the Trump administration asked the Pentagon to
draft strike plans against Iran ahead of the U.S. midterms—contrary to market
expectations that Washington would avoid escalation before the vote—pushed oil
higher. RABOBANK analysts say Canadian political polarization is widening beyond
the east; Alberta will vote on Oct. 19 on whether to secede or at least launch
an independence assessment, a development that could raise political risk for
Canadian assets and the CAD.
