Negotiators at talks to modernize the North American Free Trade Agreement are running out of time and look set to extend the remaining rounds in a bid to meet an end-year deadline as tensions rise, three sources familiar with the matter said on Sunday.

Canada sends about 75 percent of its exports to the United States and its economy could suffer if the agreement is not renewed.

The Bank of Canada, which raised interest rates in July and September, will release its business outlook report at 10:30 a.m. ET (1430 GMT). A pick-up in business spending intentions could raise the possibility the central bank will hike rates for a third time before the year is out.