USDCAD Outlook: Why Macro Divergence Favors the Bulls

A heavy dose of geopolitical friction has collided with the tech sector's unstoppable artificial intelligence narrative to start the new month. On one hand, global stocks wrapped up an incredibly strong May on the back of massive AI infrastructure spending [1]. On the other, escalating tensions between the U.S. and Iran have triggered a nearly 3% spike in oil prices [2]. This energy shock is keeping inflation fears warm and ensuring the Federal Reserve remains in no hurry to shift its neutral, wait-and-see policy stance [3]. This macro split is playing out clearly across asset classes. While high-beta tech giants continue to…