21 Jan 2015
EUR/CAD up over 2.3%, but running out of steam
FXStreet (Guatemala) - EUR/CAD is currently trading at 1.4320 with a high of 1.4360 and a low of 139.57.
In the battle vs lower oil and lower inflation and growth prospects, the BoC surprised the markets with a rate cut, the first move in four years, moving the rate down to to 0.75%, and telling markets that it sees considerable uncertainty around the outlook. This has sent the CAD considerably lower, over 2.5% vs the euro and over 2.20% vs the greenback. Meanwhile, the pair was also supported by reports that the ECB would begin bond purchases in March, contrary to widespread belief that it would begin the QE program from the current month.
Technically, analysts at TD Securities explained that sustained gains over the balance of the week will undermine the bearish prognosis they held for the cross but may not mean there is much upside potential in EUR/CAD for the moment at least. "Rather, EUR/CAD looks to be tracking back into the 1.40/1.45 range that (roughly) prevailed through Q4 last year. We are neutral here for the moment."
In the battle vs lower oil and lower inflation and growth prospects, the BoC surprised the markets with a rate cut, the first move in four years, moving the rate down to to 0.75%, and telling markets that it sees considerable uncertainty around the outlook. This has sent the CAD considerably lower, over 2.5% vs the euro and over 2.20% vs the greenback. Meanwhile, the pair was also supported by reports that the ECB would begin bond purchases in March, contrary to widespread belief that it would begin the QE program from the current month.
Technically, analysts at TD Securities explained that sustained gains over the balance of the week will undermine the bearish prognosis they held for the cross but may not mean there is much upside potential in EUR/CAD for the moment at least. "Rather, EUR/CAD looks to be tracking back into the 1.40/1.45 range that (roughly) prevailed through Q4 last year. We are neutral here for the moment."