The Bank of Canada (BoC) is meeting today and the market is expecting that it will remain on hold, however, it is likely that the announcement will leave the door open to further hikes. The BoC has been on a hiking path much like the Fed (BoC has hiked rates five times since May 2017), but if the market is right about US growth slowing, a BoC pause may be a theme in 2019, especially if oil prices fail to recover. Probably, the BoC will note that weaker commodity prices (i.e., crude) present a headwind to the outlook, but they might warn again higher interest rates being needed for the Canadian economy.
The USD/CAD increased 0.1 percent overnight, and it is trading at 1.3271 at this moment, after a risk-off day in the North American stock markets and despite that the US dollar did not go much higher.
However, what might help the Loonie over the next few days is the positioning of the market participants; US dollar longs are approaching a 1 1/2-year high and are due for a pullback, according to Bloomberg.