Here comes the Bank of Canada...

The Bank of Canada will be out with its latest monetary policy decision at 10 a.m. ET.

Economists expect the bank to hold its key rate at 0.50%.

"We expect the Bank of Canada to ... maintain a neutral outlook for future policy changes," wrote Capital Economics' David Madani in a note to clients.

"Although investors don't expect any interest rate cut this year, this could all change very quickly if we are correct about the slowdown in economic growth in the coming quarters, especially if this begins to push core inflation lower as we anticipate."

Notably, oil prices have surged by quite a bit since the bank's last meeting when it warned that the oil price shock will "dampen" economic growth.

But, "despite the over 10% rise in oil since their April meeting, USD/CAD is about 3% higher. This is likely a welcome development for a BoC who pushed back against C$ strength in their April statement, noting C$ strength posed risks to non-energy exports," noted Bank of America Merrill Lynch's Mark Cabana and Ian Gordon ahead of the meeting.

"Bottom line, we expect the BoC to support but not necessarily accelerate the move higher in USD/CAD we have seen in recent weeks."

Refresh this page for updates at 10 a.m. ET.