The BoC is expected to announce its interest rate decision rate tomorrow, at 14:00 (GMT).

BoC is expected to hike rates by 25 basis points, hiking interest rates from current +1.50% to +1.75%.

Market is currently pricing in the probability for the bank to hike rates at 92.47%, as implied by CAD OIS.

The accelerating GDP growth rate as well as the stabilisation of NAFTA, provide arguments for a more hawkish view.

On the other hand, the slowdown of the CPI rate and concerns about household consumption could be advising caution.

If there is a dovish hike, we could see the Loonie weakening, while if hawkish comments prevail, the CAD could strengthen.