USD/CAD struggles to capitalize on BoC's upbeat outlook, trades around 1.3050
|- BoC says business sentiment was broadly positive in Q4.
- WTI drops to fresh monthly lows near $58.
- US Dollar Index struggles to push beyond 97.50.
The USD/CAD pair fluctuated in a 20-pip range with the initial reaction to the Bank of Canada's (BoC) Business Outlook Survey but struggled to make a decisive move in either direction. As of writing, the pair was virtually unchanged on the day at 1.3050.
In its latest publication, the BoC noted that the business sentiment in the fourth quarter remains broadly positive. Regarding the inflation outlook, the bank noted that expectations were unchanged. "The majority of firms still anticipate inflation will be in the lower half of the bank's target range of 1% to 3%," the publication read.
Oil prices continue to push lower
Despite the BoC's relatively upbeat tone, the ongoing crude oil selloff made it difficult for the CAD to gather strength. As of writing, the barrel of West Texas Intermediate (WTI) is trading at $58.20, losing 1.5% on the day. Heightened hopes of a ceasefire in Libya seems to be weighing on crude oil prices on Monday.
On the other hand, the US Dollar Index struggled to break above the 97.50 mark and turned flat near 97.30 during the American session, not allowing the pair to gain traction. There were no macroeconomic data releases from the US on Monday and the greenback largely ignored Boston Fed President Eric Rosengren, who said that policymakers were anticipating an "almost ideal outcome in 2020 of a strong labour market and inflation near 2% target."
Technical levels to watch for
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.