Investing.com - The U.S. dollar moved higher against its Canadian counterpart on Monday, easing off a two-week low as declining oil prices continued to weigh on the Canadian currency and investors turned to the Federal Reserve’s policy meeting this week.
USD/CAD hit 1.4220 during early U.S. trade, the session high; the pair subsequently consolidated at 1.4191, gaining 0.53%.
The pair was likely to find support at 1.4062, the low of January 11 and resistance at 1.4301, Friday’s high.
The Canadian dollar remained under pressure as oil prices resumed their decline on Monday amid ongoing concerns over a global supply glut and slowing global demand.
Elsewhere, the Fed is expected to keep interest rate on hold at the conclusion of its latest meeting on Wednesday after raising interest rates for the first time in almost a decade in December.
Investors are looking to the Fed policy statement for any indication that the bank is considering slowing the path of interest rate increases this year after recent global financial market turmoil.
The loonie was lower against the euro, with EUR/CAD advancing 0.85% to 1.5373.
The euro remained under pressure after European Central Bank President Mario Draghi indicated Thursday that the bank could roll out fresh stimulus measures as soon as its next meeting in March.
Earlier Monday, data showed that German business climate weakened slightly this month.
The Ifo German business climate index ticked down to 107.3 from December’s 108.6, compared to expectations for a reading of 108.4.