The Canadian Dollar (CAD) extends its gains against the US Dollar (USD) on Thursday, with USD/CAD sliding to its lowest level since October 2024, as the Loonie draws support from rising Oil prices and a steady Bank of Canada (BoC) monetary policy outlook. Rising crude prices tend to support the Canadian Dollar, as Canada is one of the world’s largest Oil exporters. Oil prices surged sharply after Washington issued fresh warnings of potential military action against Iran over its nuclear programme, reviving concerns about supply disruptions in the Middle East. Meanwhile, traders continue to digest the latest monetary policy decisions from both the BoC and the Federal Reserve (Fed) delivered on Wednesday. Looking ahead, relative monetary policy expectations are likely to keep downside pressure on USD/CAD, with interest-rate swaps pricing in around a 44% probability of a 25-basis-point BoC rate increase to 2.50% over the next twelve months.