U.S. forecasters have downgraded Hurricane Ophelia to a Category 2 hurricane as it continues moving northward towards Newfoundland.

The National Hurricane Center in Miami said in its latest bulletin Sunday that Ophelia's winds have decreased to 175 kilometers per hour and it is traveling north-northeast towards Cape Race, Newfoundland in Canada.

The eye is expected to pass near or over the Avalon Peninsula early Monday at near-hurricane strength.

The Canadian Hurricane Center has issued a tropical storm watch beginning Sunday evening. Forecasters warn that large swells created by Ophelia will impact the South Coast of Newfoundland, with the largest waves arriving near noon Monday.