The USD/CAD pair trades with mild gains near 1.4010 during the early European trading hours on Monday. A decline in crude oil prices weighs on the commodity-linked Canadian Dollar (CAD) against the US Dollar (USD). Traders brace for the US Federal Reserve (Fed) and Bank of Canada (BoC) interest rate decisions later on Wednesday.
Oil prices fall on Monday after a report that Qatari mediators were in Tehran on Sunday as part of an effort to de-escalate regional tensions in coordination with the US. It is worth noting that Canada is a major oil-exporting country, and low crude oil prices generally have a negative impact on the Loonie.
“Concerns over renewed military hostilities in the Middle East, which drove much of last week’s crude rally, have eased this morning, but the reprieve may prove temporary,” said Vandana Hari, founder of oil market analysis provider Vanda Insights.
The BoC…
