Geopolitical tensions are starting to weigh on the Canadian dollar as traders dial back their risk exposure. The uncertainty surrounding Iran has spooked markets, causing investors to retreat from higher-yielding assets and tighten their risk tolerance. This kind of macro headwind typically ripples through multiple asset classes—when risk appetite deteriorates, we often see weakness in commodity-linked currencies like the Canadian dollar. For crypto traders watching market dynamics, these macro shifts matter because they signal broader sentiment changes. When traditional markets get jittery over geopolitical events, that flight-to-safety mentality can shift capital flows across all risk assets, including crypto positions.