USD/CAD Weakens as Oil Prices Plummet Ahead of Fed Decision
The USD/CAD pair has edged down to near 1.4113 in European trading on Tuesday, as the Canadian Dollar's brief strength is expected to be temporary due to declining oil prices.
The WTI Oil price has posted a fresh weekly low, trading 2.2% lower to around $79.40, which tends to make currencies from net energy exporters like Canada less appealing.
Meanwhile, the US Dollar trades flat after a strong Monday, awaiting the Federal Reserve's monetary policy announcement on Wednesday.
US President Donald Trump has urged Fed Chairman Kevin Warsh to cut interest rates in the upcoming meeting, citing recent inflation data and falling costs as reasons why prices should drop significantly once the Gulf War ends.
From a technical standpoint, the USD/CAD pair is trading near its 20-day exponential moving average of 1.4103, suggesting a sideways trend.