Loonie Slides to Two-Week Low Amid Oil Price Weakness and FOMC Jitters

The Canadian dollar has reached a two-week low against its US counterpart due to declining crude oil prices and cautious market positioning ahead of the Federal Reserve's upcoming monetary policy decision. Oil, one of Canada's primary exports, has fallen sharply in recent sessions, driven by demand concerns and a stronger US dollar.

West Texas Intermediate (WTI) crude has slipped below key support levels, compounding the headwinds for the Canadian dollar. The negative correlation between oil prices and USD/CAD remains pronounced, with every drop in crude amplifying the loonie's weakness.

The market is now focusing on the Federal Open Market Committee (FOMC) meeting, where the US central bank is widely expected to hold interest rates steady. However, any hawkish signals on future rate cuts could provide further support for the greenback, pushing USD/CAD higher.