21 Jan 2015
EUR/CAD boosted by BOC rate cut
FXStreet (Mumbai) - The EUR/CAD pair rose sharply to trade closer to its 200-DMA level located in 1.4327 after the Bank of Canada surprise markets by announcing an interest rate cut.
The pair now trades 2.25% higher for the day at 1.4308 levels, compared to the previous session’s close at 1.3993 levels. The Canadian dollar fell sharply after the Bank of Canada unexpectedly cut its target for the overnight rate by one-quarter of one percentage point to 0.75 per cent. The Bank Rate is correspondingly 1 percent and the deposit rate is 0.5 percent. 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.
EUR/CAD Technical Levels
The immediate resistance is seen at 1.4327 (200-DMA), above which gains could be extended to 1.4367 levels. Meanwhile, support is seen at 1.4250 and 1.4206 levels.
The pair now trades 2.25% higher for the day at 1.4308 levels, compared to the previous session’s close at 1.3993 levels. The Canadian dollar fell sharply after the Bank of Canada unexpectedly cut its target for the overnight rate by one-quarter of one percentage point to 0.75 per cent. The Bank Rate is correspondingly 1 percent and the deposit rate is 0.5 percent. 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.
EUR/CAD Technical Levels
The immediate resistance is seen at 1.4327 (200-DMA), above which gains could be extended to 1.4367 levels. Meanwhile, support is seen at 1.4250 and 1.4206 levels.