• USD/CAD edged lower on Tuesday as rising expectations of a ceasefire in the Middle East conflict boosted risk appetite .
• President Donald Trump said the U.S. will end its war in Iran “pretty quickly” but could return for targeted “spot hits” if needed, ahead of a planned primetime address. Markets responded positively to the potential de-escalation.
• The U.S. dollar has benefited from a safe-haven bid since the conflict began in late February, and the U.S., a net energy exporter, is also relatively better positioned to handle oil disruptions than other nations.
•Brent crude futures fell below $100 per barrel on Wednesday, although they were last trading at about $102.70.
• On the data front, The S&P Global Canada Manufacturing PMI dropped to 50.0 in March from 51.0 in February, its lowest in three months, as U.S. tariffs and war-related uncertainty weighed on output and input costs.
• Immediate resistance is located at 1.3915(Daily high), any close above will push the pair towards 1.3962(38.2%fib).
• Support is seen at 1.3870 (50%fib) and break below could take the pair towards 1.3776(61.8%fib).
