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The Bank of Canada (BoC) rate decision will be in focus, expected to be announced at 14:00 GMT. USD/CAD trades 1% higher at 1.4020, per TD Securities.

Key quotes

“We see a small risk of a surprise from the BoC, but it is not our baseline scenario.” 

“BoC will be the first major Central Bank to quantify the pandemic shock. This could hit broader sentiment, particularly if US data & earnings reports continue to weigh.” 

“USD/CAD has traded up to test trendline resistance around 1.4025. We think the balance of risks favors further upside and think spot could trade up to test the waters above 1.4260 without too much difficulty if market confidence deteriorates further.”