The Canadian government on Wednesday said that there is community transmission of the Omicron Covid-19 variant all over the country. As a result, the government will be sending booster doses and rapid tests to provinces so that they can ramp up vaccinations in response to the outbreak of the new variant. The government pledged to increase testing capacity at the border and urged people to avoid non-essential international travel. 

Market Reaction

The loonie has not reacted to the latest government warnings, with FX markets focused on the imminent monetary policy announcement from the Fed (at 1900GMT).