2023.01.3008:59:00UTC+00Canadian Dollar Lower As Oil Prices Drop

The Canadian dollar declined against its most major counterparts on Monday, as oil prices fell ahead of a meeting of the Organization of the Petroleum Exporting Countries and allies to review current price policy.

Crude for March delivery fell $0.82 to 78.87 per barrel.

Investors await the OPEC meeting taking place on February 01. The cartel is expected to not change output amid an improvement in oil prices in recent weeks.

The Fed will hold its policy meeting on January 31-February 1, when it is expected to downshift to a 0.25 percent increase in interest rates.

All eyes are on the accompanying statement for clues about the outlook for further rate hikes.

The loonie dropped to 4-day lows of 1.4533 against the euro and 1.3354 against the greenback, off its early highs of 1.4450 and 1.3299, respectively. The next possible support for the loonie is seen around 1.47 against the euro and 1.36 against the greenback.

The loonie slipped to a 4-day low of 96.99 against the yen, from an early nearly 2-week high of 97.87. On the downside, 92.00 is possibly seen as the next support level for the loonie.

In contrast, the loonie was up against the aussie, at a 5-day high of 0.9438. If the loonie rises further, it may locate resistance around the 0.92 level.