The economic data highlight for today/tonight will be the BoC rate decision. Has the Canadian economy and sentiment improved enough to warrant an interest rate increase by the BoC?
While an earlier rate increase is highly anticipated (brought forward from April), this would also mean that the BoC is unlikely to further increase rates in the medium term. This could be likely to have a negative impact on the USDCAD, driving prices off the 1.2410 support level. It would be crucial to read the statement accompanying the decision.