30 Jan 2015
EUR/CAD hits 6-week high
FXStreet (Mumbai) - The EUR/CAD cross, rose to six-week highs after the downbeat Canadian GDP data pushed the USD/CAD pair to fresh six-year highs, while the EUR/USD pair remained largely unchanged.
Canadian economy contracts
A report by Statistics Canada showed that the country's GPD fell 0.2% in November, compared to expectations for a 0.1% decline. The economy had expanded 0.3% in the previous quarter.
The weak data triggered more losses in the Canadian dollar, which was already hurt by a surprise interest rate cut by the Bank of Canada in the last week. A weak GDP is likely to trigger speculation of more interest rate cuts in Canada.
EUR/CAD Technical Levels
The immediate resistance is seen at 1.4497, above which gains could be extended to 1.04568 (50-week average). On the flip side, a break below 1.4383, shall open doors for a re-test of 1.4298 (200-DMA).
Canadian economy contracts
A report by Statistics Canada showed that the country's GPD fell 0.2% in November, compared to expectations for a 0.1% decline. The economy had expanded 0.3% in the previous quarter.
The weak data triggered more losses in the Canadian dollar, which was already hurt by a surprise interest rate cut by the Bank of Canada in the last week. A weak GDP is likely to trigger speculation of more interest rate cuts in Canada.
EUR/CAD Technical Levels
The immediate resistance is seen at 1.4497, above which gains could be extended to 1.04568 (50-week average). On the flip side, a break below 1.4383, shall open doors for a re-test of 1.4298 (200-DMA).