EUR/CAD poised for bullish breakout?
This week features some key macro events from Canada. The BoC rate decision on Wednesday and Canadian jobs report on Friday will be the highlights. Earlier today we had a disappointing Ivey survey.
The BoC is not expected to hike rates further after a total of 425 basis points worth of interest rate rises. The central bank signalled at its previous meeting that it would pause to digest the impact of the last tightening. We have seen weakening growth, and slowdown in inflation, although job creation has been above forecast. Will we see another strong showing from the jobs market on Friday?
Ahead of that is the BoC decision on Wednesday. If the central bank stays pat on rate hikes, then this could pave the way for more gains for the EUR/CAD, especially if Governor Tiff Macklem opts for a less hawkish language in the policy statement.
The area around 1.4600 to 1.4650 had been strong resistance in the past. But with the BOC potentially pausing its hiking and ECB likely to tighten its belt further, we could see an eventual breakout. Will that happen this week?
By Fawad Razaqzada
Follow Fawad @Trader_F_R
The BoC is not expected to hike rates further after a total of 425 basis points worth of interest rate rises. The central bank signalled at its previous meeting that it would pause to digest the impact of the last tightening. We have seen weakening growth, and slowdown in inflation, although job creation has been above forecast. Will we see another strong showing from the jobs market on Friday?
Ahead of that is the BoC decision on Wednesday. If the central bank stays pat on rate hikes, then this could pave the way for more gains for the EUR/CAD, especially if Governor Tiff Macklem opts for a less hawkish language in the policy statement.
The area around 1.4600 to 1.4650 had been strong resistance in the past. But with the BOC potentially pausing its hiking and ECB likely to tighten its belt further, we could see an eventual breakout. Will that happen this week?
By Fawad Razaqzada
Follow Fawad @Trader_F_R
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