The Canadian dollar dropped against its major counterparts in the early European session on Monday, as oil prices fell ahead of the OPEC meeting later in the day, which will assess compliance by the members to the output caps.

Crude for September delivery fell $0.22 to $49.36 per barrel.

The 2-day meeting to be held in Abu Dhabi is set to discuss ways to increase compliance by members who had not been promptly adhering to their output quotas thus far.

The OPEC compliance was lowered to 78 percent in June, while non-OPEC output cut compliance stood at 82 percent, the IEA had warned.

European shares are trading mixed, as geopolitical tensions persisted, while higher copper and iron ore prices helped lift commodity-related stock.

The loonie showed mixed performance in the Asian session. While the loonie held steady against the greenback and the euro, it rose against the yen. Against the aussie, it fell.

The loonie declined to 1.2682 against the greenback, its lowest since July 18. Continuation of the loonie's downtrend may see it challenging support around the 1.28 region.

The loonie fell to a 1-1/2-month low of 1.4968 against the euro, compared to 1.4894 hit late New York Friday. The loonie is likely to locate support around the 1.51 level.

Official data showed that German industrial output unexpectedly fell 1.1 percent month-on-month in June, in contrast to a 1.2 percent rise seen in May. Production was forecast to grow 0.1 percent.

The loonie dropped to a 6-day low of 1.0043 against the aussie and held steady thereafter. If the loonie extends slide, 1.01 is possibly seen as its next support level.

The latest survey from the Australian Industry Group showed that Australia's construction sector continued to expand in July, and at an accelerated rate, with a record Performance of Construction Score of 60.5.

That's up sharply from 56.0 in June, and it moves farther above the boom-or-bust line of 50 that separates expansion from contraction.

Reversing from an early high of 87.71 against the yen, the loonie slipped to more than a 4-week low of 87.35. The loonie is seen finding support around the 86.00 area.

Preliminary data from the Cabinet Office showed that Japan's leading index reached its highest level in more than three years in June.

The leading index, which measures the future economic activity, rose to 106.3 in June from 104.7 in May. This was the highest score since March 2014, when the reading was 106.7 and slightly above the expected level of 106.2.

Looking ahead, U.S. consumer credit for June is slated for release in the New York session.

At 12:45 pm ET, Federal Reserve Bank of St. Louis President James Bullard gives a presentation the U.S. economy and monetary policy before the America's Cotton Marketing Cooperatives 2017 Conference, in Nashville.

At 1:25 pm ET, Federal Reserve Bank of Minneapolis President Neel Kashkari is expected to speak at the Rotary Club of Downtown Sioux Falls, in South Dakota.

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