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23 Feb 2015
EUR/CAD: Greece and central bank speeches the focus
FXStreet (Guatemala) - EUR/CAD is currently trading at 1.4275 with a high of 1.4302 and a low of 1.4222.
EUR/CAD remains in the consolidation of the recent rally that took the cross from 1.4080 resistance with a gap up to challenge the 1.41 handle that was taken with ease and conviction. 1.42 was a breeze although 1.43 proved too much.
The events around Greece are ongoing and this week will be key, and should the procedures be met in full without glitches, we could see some buying in the euro crosses in a relief rally. Meanwhile, we will now await the speech's from the governors of Central Banks tomorrow, including Poloz and Draghi, as well as Carney and Yellen.
Analysts at TD Securities explained that weak domestic data, combined with the anticipation of dovish comments from BoC Governor Poloz tomorrow. " A more constructive-sounding message coming from Fed Chair Yellen at the same time more or less—are keeping short-term Canadian rates depressed and helping drive US-Canada spreads back out to near recent wides."
The analysts at TD Securities also explained that the broader sideways range remains intact and weak trend momentum suggests a continuation of the directionless markets for a little longer at least. "On the face of it, last Friday’s strong intraday rally (bullish outside range session) might force a move to retest the recent highs /200-day MA at 1.4335/40. We rather think the broader direction in the cross is lower so gains to the 1.43/1.45 region offer better selling opportunities from a medium-term perspective."
EUR/CAD remains in the consolidation of the recent rally that took the cross from 1.4080 resistance with a gap up to challenge the 1.41 handle that was taken with ease and conviction. 1.42 was a breeze although 1.43 proved too much.
The events around Greece are ongoing and this week will be key, and should the procedures be met in full without glitches, we could see some buying in the euro crosses in a relief rally. Meanwhile, we will now await the speech's from the governors of Central Banks tomorrow, including Poloz and Draghi, as well as Carney and Yellen.
Analysts at TD Securities explained that weak domestic data, combined with the anticipation of dovish comments from BoC Governor Poloz tomorrow. " A more constructive-sounding message coming from Fed Chair Yellen at the same time more or less—are keeping short-term Canadian rates depressed and helping drive US-Canada spreads back out to near recent wides."
The analysts at TD Securities also explained that the broader sideways range remains intact and weak trend momentum suggests a continuation of the directionless markets for a little longer at least. "On the face of it, last Friday’s strong intraday rally (bullish outside range session) might force a move to retest the recent highs /200-day MA at 1.4335/40. We rather think the broader direction in the cross is lower so gains to the 1.43/1.45 region offer better selling opportunities from a medium-term perspective."