The Canadian Dollar remained flat as investors awaited new developments surrounding the potential US-Iran agreement.

The Canadian Dollar lacked clear direction against major currencies as investors monitored fresh updates on US-Iran negotiations. Meanwhile, Canada’s Q1 GDP is forecast to expand at an annualized rate of 1.5%.

The Canadian Dollar (CAD) traded mostly steady against its major counterparts on Wednesday’s Asian session, with the exception of the New Zealand Dollar (NZD), while hovering near 1.3810 against the US Dollar (USD).

The Loonie struggled to find clear direction as investors closely monitored fresh developments surrounding negotiations between the United States (US) and Iran aimed at permanently ending tensions in the Middle East and reopening the Strait of Hormuz.

Talks between Washington and Tehran remained ongoing despite Iran accusing the US of carrying out attacks that US Central Command described as “defensive” actions intended to protect American troops from threats posed by Iranian forces, according to the BBC.

Adding to optimism, an Iranian official stated on Tuesday that the final major obstacle in negotiations involves the release of frozen Iranian assets, with discussions reportedly being mediated by Qatar, according to Iran’s Fars news agency. Although there has been no official confirmation, the comments raised expectations that both sides may be nearing an agreement.

Meanwhile, attention in Canada has shifted toward upcoming monthly and first-quarter Gross Domestic Product (GDP) figures due on Friday. Canada’s monthly GDP is forecast to rise modestly by 0.1%, compared with the previous 0.2% increase. On an annualized basis, the economy is expected to grow 1.5% in Q1 after shrinking 0.6% previously.