USD/CAD trudging near 1.3350 as Loonie traders await BoC in the mid-week

• The Loonie continues to get undercut by declining oil markets.
• This week sees action from the Bank of Canada as well as the US Fed’s highly-anticipated rate hike.

The USD/CAD pairing sees steady action near 1.3380 after Loonie traders remained nonplussed last week as the pair spiraled around the 1.3350 level, seeing limited gains from the previous week’s opening at the 1.3300 handle.

Slumping investor confidence in risk assets as traders fear a growing global economic slowdown and fragile oil prices sees the Canadian dollar stuck at a low point against the greenback; the US Dollar has closed higher against the Loonie for eight of the last eleven straight trading weeks, closing flat for two and only losing moderate ground for a single week. As the Canadian dollar shares its fate with oil prices, shell-shocked energies markets are weakening the CAD as oil prices remain constrained at recent lows.

The economic calendar is a fair to quiet showing in the early stages of this week for the USD/CAD pairing, but the action will fire up on Wednesday when the Bank of Canada’s (BoC) Consumer Price Index drops on markets alongside the US Federal Reserve’s Policy Statement, Interest Rate Decision, and the FOMC’s Economic Projections, where the US Fed is widely expected to hike interest rates one last time in 2018.

USD/CAD Technical Levels