- WTI edges lower on Monday, trades below $23.
- US Dollar Index steadies near mid-99s in early American session.
- Coming up on Wednesday: BoC monetary policy meeting.
The USD/CAD pair, which erased more than 200 pips last week, stays relatively calm on Monday and fluctuates in a tight range amid a lack of significant fundamental drivers. As of writing, the pair was up 0.1% on a daily basis at 1.3965.
Crude oil starts the week on the back foot
The uncertainty surrounding the crude oil output cut deal last week made it difficult for crude oil prices to continue to push higher. However, the broad-based USD weakness caused the pair to lose its traction.
After members of OPEC and their allies reached a final deal to reduce oil production by 9.7 million barrels per day in May and June, the barrel of West Texas Intermediate edged lower on Monday to reflect investors’ disappointment. At the moment, the WTI is down 1.35% on the day at $22.85.
Meanwhile, the US Dollar Index is moving sideways near 99.50 in the absence of fundamental drivers on Easter Monday and helping the pair stay in its daily trading channel.
The next significant event for the pair will the Bank of Canada’s (BoC) monetary policy announcements on Wednesday. Previewing the BoC meeting, “If the BoC forecast errs on the optimistic side (-3.0% or higher on 2020 GDP) then it would imply a lower bar to additional asset purchases or rate cuts,” said TD Securities analysts. “Conversely, if the BoC takes a more pessimistic path (-5.0% GDP growth or below), it would suggest that they believe their announced policy stance is appropriate.”
Technical levels to watch for