From its two-month low near 1.3300 on Monday, the USD/CAD pair goes up. In the first half of the European session, the pair keeps its recovery gains and is at the top of its daily range, right around the mid-1.3300s.

Crude Oil prices go down for a second day, which hurts the Loonie, which is tied to commodity prices and helps the USD/CAD pair. Early in February, Russia’s Baltic ports sent out more crude oil, which made it less likely that China would increase its demand. Also, the expected production freeze by OPEC+ this week is a drag on the black liquid.

The USD’s pessimism makes it hard for the USD/CAD pair to go up. USD bulls are still being careful near last week’s nine-month low because the Fed is not tightening policy as quickly as it used to. But traders are still hesitant and choose to stay out of the market until the FOMC makes its much-anticipated decision on monetary policy on Wednesday, after a two-day meeting.

Monday is not a good day to make direction bets because neither the US nor Canada will release any market-moving data.

Conclusion

At 1.3300, the USD/CAD pair is still affected by how the USD/Oil price moves. If the handle is broken decisively, the price could drop in the short term.