EUR/CAD – drops below 1.44 after BOC keeps rates unchanged

EUR/CAD fell below 1.44 handle after Bank of Canada kept key rates unchanged as expected and revised 2016 GDP forecast higher.

CAD jumps on GDP forecasts, EUR/USD suffers bearish break

Bid tone around CAD strengthened as the Bank of Canada revised its 2016 GDP forecast to 1.7% from previous forecast of 1.4%. The bank also said risks to inflation are “roughly balanced”. Consequently, USD/CAD dropped to 1.2744 levels.

Meanwhile, EUR/USD finally managed to chew through bids around 1.1340-1.1330 earlier today, thereby ending a week long consolidation. Thus, losses are being extended on downside breakout from a sideways pattern.

EUR/CAD currently trades around 1.4402; after having clocked a low of 1.4377.

EUR/CAD Technical Levels

The immediate support is seen at 1.4388 (Mar 10 low), under which the cross may drop to 1.4024 (Dec 3 low). On the other hand, a break above 1.4529 (Mar 1 low) would open doors for a rally to 1.4783 (200-DMA).