The Canadian dollar weakened against most major currencies in the early European session on Monday, as oil prices fell due to oversupply concern.
Crude oil for April delivery are currently down $0.39 to $38.11 a barrel.
Traders focus on the Fed meeting and the crude reserve reports, due in the week, for fresh clues on the oil prices.
In the Asian trading today, the loonie held steady against its major rivals.
In the early European trading, the Canadian dollar fell to 1.3277 against the U.S. dollar and 1.4795 against the euro, from early highs of 1.3211 and 1.4720, respectively. If the loonie extends its downtrend, it is likely to find support around 1.38 against the greenback and 1.52 against the euro.
Against the yen, the loonie dropped to 85.65 from an early near 1-1/2-month high of 86.23. The loonie may test support near the 81.00 area.
Meanwhile, the loonie rose to 0.9977 against the Australian dollar, from an early 5-day low of 1.0033. The loonie is likely to find resistance around the 0.98 area.
Looking ahead, Eurozone industrial production for January is due to be released at 6:00 am ET.
At 3:00 pm ET, Reserve Bank of New Zealand Governor Graeme Wheeler is expected to speak at the Institute of Directors in Auckland.
The material has been provided by InstaForex Company – www.instaforex.com