The Bank of Canada announces its decision on interest rate at 10:00 am ET Wednesday. Economists expect the bank to keep benchmark rate on hold at 0.50 percent.

Ahead of the decision, the loonie traded mixed against its major counterparts. While the loonie held steady against the yen, it retreated from early highs against the rest of major rivals.

The loonie was worth 1.5127 against the euro, 82.81 against the yen, 1.0103 against the aussie and 1.3517 against the greenback as of 9:55 am ET.

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