USD Steady as Chip Stocks Rally; Oil Drops on US-Iran Talk Progress

The US dollar is trading in a narrow range as equity markets drift sideways, with semiconductor stocks extending recent gains while oil prices slide on positive developments in US-Iran diplomatic talks. The decline in crude oil prices is a notable cross-asset driver for forex markets, as lower energy costs tend to weigh on commodity-linked currencies such as CAD and NOK while potentially easing inflationary pressures in the US economy. The positive trajectory of US-Iran negotiations raises the prospect of increased Iranian oil supply entering global markets, which could keep downward pressure on crude prices in the near term. For USD/CAD specifically, falling oil prices remove a key support pillar for the Canadian dollar, potentially favoring further USD strength against CAD. Meanwhile, the tech-led equity resilience is keeping risk sentiment balanced, limiting safe-haven demand for the Japanese yen and Swiss franc. Traders should monitor further geopolitical developments and upcoming economic data for directional cues across major pairs.