1 Jul 2015
EUR/CAD: Bullish technically, despite Greece as supported by funds
FXStreet (Guatemala) - EUR/CAD is currently trading at 1.3922 with a high of 1.3952 and a low of 1.3868.
EUR/CAD has been held in consolidation and supported around the 1.39 handle's vicinity since the bullish recovery from the bearish opening gap at the start of the week and another full recovery where demand met supply yesterday. This is despite the Greek debacle as supported on funds and the greenback.
EUR/CAD price action
EUR/CAD fell away from 1.3750 on the weekend's Asia open to 1.3515 on the lows of the bearish gap. The pair has since been in demand up to 1.3962 meeting supply to 1.3807 before yesterday's full recovery to 1.3965, marking a new high, and has consolidated in to t a sideways drift between there and today's lows of 1.3868.
EUR/CAD fundamentals as we await Greek referendum
Yesterday, Athens put forward a new proposal to the creditors of a 2-year bailout program that will not include the IMF. Today, a letter was leaked where Greece’s prime minister Alexis Tsipras supposedly accepted most Troika conditions. Meanwhile, Tsipras has already addressed the nation on live TV when he confirmed that Sunday’s referendum is still on. He continues to urge the people to vote ‘NO’. Meanwhile, Eurogroup President, Jeroen Dijsselbloem said that there is "little chance" that any progress will be made in the Greek negotiations after controversial comments from Prime Minister Tsipras during today’s' speech.
There has been a Eurogroup conference call that has ended just now and it has been said by an ECB official that there will no other meetings that are planned before this Sunday's referendum.
From the calendar, there had been a disappointment in Canada's April GDP print of –0.1% m/m (market: +0.1%). Analysts at TD Securities explained that the key implication here is that the risk is that barring stellar growth in May and June of at least 0.3% m/m (a very high bar in our view), the Canadian economy is quite likely to contract in Q2 and thus enter a technical recession. "This has fuelled speculation that the Bank of Canada will need to cut rates....Even if the Bank does not cut, we expect at a minimum that it will backpedal on its optimism so betting on additional CAD weakness is warranted." For Europe, yesterday's CPI's in Europe were in line while EZ Markit Manufacturing PMI (Jun) today were also in line at 52.5.
EUR/CAD technically
EUR/CAD remains in consolidation mode; There was a bull break-out through a previous resistance that ow comes as a major support in the 1.3760/00 range prior to the bearish gap on 24th June. while the market holds above here there is a technical bias to the upside. Analysts at TD Securities said however, "Holding support keeps the near-term outlook a little more positive while a break lower (which a weekly reversal would certainly suggest is a risk) would target as dip back to 1.34/1.36 at least."
EUR/CAD has been held in consolidation and supported around the 1.39 handle's vicinity since the bullish recovery from the bearish opening gap at the start of the week and another full recovery where demand met supply yesterday. This is despite the Greek debacle as supported on funds and the greenback.
EUR/CAD price action
EUR/CAD fell away from 1.3750 on the weekend's Asia open to 1.3515 on the lows of the bearish gap. The pair has since been in demand up to 1.3962 meeting supply to 1.3807 before yesterday's full recovery to 1.3965, marking a new high, and has consolidated in to t a sideways drift between there and today's lows of 1.3868.
EUR/CAD fundamentals as we await Greek referendum
Yesterday, Athens put forward a new proposal to the creditors of a 2-year bailout program that will not include the IMF. Today, a letter was leaked where Greece’s prime minister Alexis Tsipras supposedly accepted most Troika conditions. Meanwhile, Tsipras has already addressed the nation on live TV when he confirmed that Sunday’s referendum is still on. He continues to urge the people to vote ‘NO’. Meanwhile, Eurogroup President, Jeroen Dijsselbloem said that there is "little chance" that any progress will be made in the Greek negotiations after controversial comments from Prime Minister Tsipras during today’s' speech.
There has been a Eurogroup conference call that has ended just now and it has been said by an ECB official that there will no other meetings that are planned before this Sunday's referendum.
From the calendar, there had been a disappointment in Canada's April GDP print of –0.1% m/m (market: +0.1%). Analysts at TD Securities explained that the key implication here is that the risk is that barring stellar growth in May and June of at least 0.3% m/m (a very high bar in our view), the Canadian economy is quite likely to contract in Q2 and thus enter a technical recession. "This has fuelled speculation that the Bank of Canada will need to cut rates....Even if the Bank does not cut, we expect at a minimum that it will backpedal on its optimism so betting on additional CAD weakness is warranted." For Europe, yesterday's CPI's in Europe were in line while EZ Markit Manufacturing PMI (Jun) today were also in line at 52.5.
EUR/CAD technically
EUR/CAD remains in consolidation mode; There was a bull break-out through a previous resistance that ow comes as a major support in the 1.3760/00 range prior to the bearish gap on 24th June. while the market holds above here there is a technical bias to the upside. Analysts at TD Securities said however, "Holding support keeps the near-term outlook a little more positive while a break lower (which a weekly reversal would certainly suggest is a risk) would target as dip back to 1.34/1.36 at least."