USD/CAD up 0.59% on the day, headed for a break through 1.3100?

Currently, USD/CAD is trading at 1.3087, up 0.59% on the day, having posted a daily high at 1.3098 and low at 1.3009.

USD/CAD has been stabilising in a consolidative period after a series of supply at the start of this year in January, falling from 1.3580 and fuelled further recently in response to the most recent public appearance from BoC Gov. Poloz. 

"The Gov. reiterated his expectation for policy divergence between Canada and the U.S. while underscoring the persistent excess capacity in the Canadian economy and its link to weaker domestic inflation," noted analysts at Scotiabank.

ISM employment index and ADP point to strong Jan payrolls - ING

Meanwhile, all has been on the US today with data in the ISM and ADP coming ut positive vs a backdrop of poor GDP Q4 and durable goods with inline PCE ahead of the FOMC today - don't expect too much here as there is not presser and that usually means the Fed will not act. The statement will be worthy of note to see if Yellen expands on December's forecasts for 2017. 

FOMC Preview: What to expect of EUR/USD?

USD/CAD levels

USDCAD short-term technicals are neutral according to analysts at Scotiabank. USD/CAD’s break of 1.3020 support delivered a fresh multi-month low in the upper 1.29s, however, the move was short-lived with considerable support observed around 1.30. "The shorter-term charts (2h, 4h, 6h) have completed bullish hammers and a morning star (6h). We look to support at 1.3020 and anticipate near-term gains toward 1.31."