Bank of Canada is expected to hike rates for the 3rd time this year. The hike is almost full priced in and the current expectations are for a dovish hike.

So unless we get a surprise and a hawkish message delivered, loonie should not strengthen too much, besides the initial knee jerk.

However, I believe there is room for USD/CAD to move down until the announcement tomorrow. The next obvious target is 1.3050, should that not hold we might see USD/CAD closing in on 1.3000 before the meeting.

What are your thoughts?