The loonie is strong in the early going
USD/CAD is down 25 pips on the day to 1.3045 in a reversal after a march from these levels to 1.3090 to start the week.
That move was all about the risk trade but the next one will be about economic data. The CPI report is due out at the bottom of the hour and expected at +2.3% y/y.
The BOC was one of the few global central banks to hit inflation targets last year but the market is still pricing in a 76% chance of a rate cut before 2021. The main event of the day comes at 1500 GMT with the BOC decision. The chance of a move is nil but there are some looking for a more-dofish stance. I don't count myself among that crowd but we will see at 1500 GMT, followed by a press conference at 1615 GMT.
On the US economic calendar, we get existing home sales at 1500 GMT.
Also look out for headlines from Davos, Trump's impeachment trial and on everything about coronavirus.
