The US dollar is higher against most major pairs on Tuesday. The Canadian dollar is an outlier as it gained 0.17 percent versus the greenback ahead of the Bank of Canada (BoC) rate statement. The Canadian central bank has divided analyst as is expected to hold rates even if an interest rate hike would not be a total surprise. The BoC was expected to hike a couple of times in 2019, specially after staying put in December while the Fed lifted American rates. The volatile end of the year and the rocky start to this one has changed Fed monetary policy expectations and its anticipated Governor Poloz waits until there is less uncertainty on trade and oil prices before seeking normalization.

Canadian trade deficit widened in November

BoC to hold rates at 1.75 percent

Fed Minutes from December FOMC to be published