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Forex: USD/CAD testing 1.0110 offers after new BoC announcement

FXstreet.com (Barcelona) - The USD/CAD is trading on a slightly bid tone following the appointment of Mr. Poloz as the new BOC Governor. After finding a major barrier at 1.0050, failed to be penetrated after up to four attempts since April 30, the exchange rate is now threatening supply area at 1.0123/1.0110, as per the drop-base-drop from April 29/30.

According to Adam Button: "The thinking is that since Poloz comes from a government agency aimed at boosting exports he will be more prone to weaken the Canadian dollar to boost exports. That’s it. If you think it takes a PhD to trade, the geniuses behind the last 25 pip move in the CAD crosses are telling you differently."

In view of TDS analysts: "As yet, there is no obvious sign of a strong bounce. The charts suggest that the 1.0100/05 remains the pivotal resistance on the short-term charts. Above 1.0105 should allow for a decent short-term bounce to the 1.0140/60 range."

There has been a last headline courtesy of Dow Jones referring Mr. Poloz's inflation target view as "sacrosanct" or in christian terms, regarded as too relevant to be interfered with or violated.

Session Recap: Euro falls as Draghi opens the door to 'negative deposit rates'

The Euro collapsed on the Thursday’s session following the ECB's rate cut by 25 bps and the possibilities of further cuts. But the major reaction came as Mario Draghi opened the door to negative deposit rates to try to encourage the banking lending. Draghi said they are "technically ready."
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Forex: EUR/USD holds above the 1.3050 and focuses on NFP to see the future

The EUR/USD collapsed on Thursday after ECB's movements on rate cuts and the 'open mind' about the negative deposit rates. Mario Draghi opened the door to further cuts and said the bank is 'technically ready' in case the eurozone conditions worsen. The EUR/USD recorded its first negative day in the last five sessions with 0.86% daily losses from opening price to the current 1.3065.
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