The Bank of Canada left rates unchanged today and said that rates would remain at the record low 0.25% until economic slack is absorbed, which they didn’t expect to be until 2023, at the earliest. The BOC also left their bond purchase program unchanged, buying up to 4 billion Canadian Dollars a week.
EUR/CAD has been in a downward sloping channel since July 31st, 2020 and broke lower out of the channel, and below the 50% retracement level from the February 2020 lows to the highs of March 19th, 2020 , on March 3rd.
Remember, the ECB meets later, and EUR/CAD is sitting at a key level. Because the Bank of Canada was “as expected” today, any changes to the European Central Banks current monetary stimulus program could cause this pair to move quickly.
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