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.
