ANALYSIS
NQ100 Finds Support from PPIApr 14
EURCAD is at the lowest levels of the last 6 years
Bank of Canada increased its policy rate by 25 bps to 0.50 in March meeting. This has been the first rate hike of the BoC since October 2018, leading to strong recovery in CAD. On the other side, high oil and natural gas prices due to the Russian invasion of Ukraine trigger high inflationary pressure on Europe and the European Central Bank is more cautious compared to the Bank of Canada. Thus we observe weak performance in euro. Technically, the pair is at the lowest level since June 2015 and as long as it stays below 1.3800, we will follow 1.3610 and 1.3505 indicated by Fibonacci 100 percent expansion line.
