The USD/CAD pair lacked any firm directional bias and seesawed between tepid gains/minor losses, just above mid-1.2700s through the early European session. The pair continued with its struggle to register any meaningful recovery from multi-year lows and has been oscillating in a narrow band over the past three trading sessions.
The Fed is scheduled to announce its decision at the end of a two-day meeting on Wednesday. Market expectations are growing that the Fed will ease its monetary policy further by expanding the bond-buying program. The announcement could play a dominant role in driving the sentiment surrounding the greenback and provide a fresh directional impetus to the USD/CAD pair.