Business investment in Canada might be even more of a drag on the country's growth in 2016 than previously assessed due to recent weakness in price, and oil and gas companies' reaction function. The Bank of Canada Business Outlook Survey for Q4 2015 was weak, which augmented this theme, as intentions for investment dropped to the lowest readings since 2009 recession. The market now anticipates an increased likelihood of a rate cut by the central bank during its meeting today.

"Regardless of whether or not the Bank of Canada cuts rates, we believe that the uptrend in USD/CAD will persist. The 1.5000 level now serves as an anchor for the market from a behavioural/sentiment perspective", says RBC Capital Markets.

The Canadian economy gets significantly affected by oil prices as the price moves impact variables such as terms of trade, incomes, housing, certain components of CPI inflation and the Canadian dollar.