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Forex: EUR/CAD falls to 1.3462/65 after BoC interest rate decision

FXstreet.com (Barcelona) - The EUR/CAD has been operating off its intraday highs (1.3526) Wednesday, ahead of the BoC interest rate decision. Following the release however, and as details surfaced, the pair is now trading at 1.3462/65 after a 30-pip drop.

In Canada, the highly anticipated BoC interest rate decision was held at 1.0%, matching consensus estimates. The Bank of Canada has highlighted in its statements that due to 'persistent' supply bottlenecks, Canadian heavy crude already trades at a discount to global prices. A secular change in the commodity sector would sharply reduce export earnings and more importantly, investment expectations domestically.

The EUR/CAD will encounter resistive measures at 1.3535, then 1.3578, and finally 1.3669. Conversely, a movement lower will portend the propensity of supports at 1.3381, followed by 1.3290, and ultimately 1.3237.

Forex: USD/CAD rises to 1.0266/70 after BoC

The USD/CAD had moved higher all day ahead of the BoC interest rate decision and rate statement Wednesday, which was by far the marquee event of the afternoon thus far during European trading. Following the events, the cross has settled at 1.0266/70, rising +0.58% to session highs.
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Canada: BoC keeps policy unchanged, rate at 1% in April

The Bank of Canada decided to keep its overnight rate at 1% in April, the Bank rate at 1.25% and the deposit rate at 0.75%. In the last meeting of Governor Carney before leaving the BoC for the BoE, the Council expects global economic activity to grow modestly in 2013 before strengthening over the following two years: “On a quarterly basis, growth in Canada is expected to pick up to about 2.5 per cent in the second half of this year. Despite this expected pickup, with the weak growth in the second half of 2012, annual average growth is now projected to be 1.5 per cent in 2013. The economy is then projected to grow by 2.8 per cent in 2014 and 2.7 per cent in 2015, reaching full capacity in mid-2015 – later than anticipated in the January MPR”, said the statement.
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