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17 Apr 2013
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.
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.