USD/CAD: besides NAFTA headlines, all depends on BoC from here - Scotiabank

Analysts at Scotiabank explained that the Bank of Canada rate expectations are firm with OIS pricing an 87% chance of a hike for next Wednesday’s policy decision (and MPR forecast update/press conference). 

Key Quotes:

"The repricing has been remarkably swift and we remain somewhat cautious on the basis of Gov. Poloz’ ‘run hot’ comments from December. Domestic risk is limited ahead of next Wednesday, with no major scheduled data releases."

"Risk reversals are showing signs of stabilization following their most recent adjustment, reflecting an impressive decline in the premium for protection against CAD weakness."