Greenback Drops, Bank of Canada Will Announce Big Decision
The single currency and Canadian Dollar have significantly increased. Greenback and Pound have declined. Today, Janet Yellen will express her feelings about the economy and Bank of Canada will announce its decision concerning the rate hike. Lael Brainard (Fed Governor) claimed that Fed should act relying on the economic condition. She said that the rate hike should be done very moderately and thoughtfully. She acknowledged the need for the balance sheet lowering. Meanwhile, European Central Bank is expected to exit from the asset purchase program. ECB’s -0.40% deposit rate is projected to be lifted by 10 basis points. These forecasts will keep boosting the euro.
Loonie is the firmest currency. EUR/CAD’s drop from 1.5257 is having a corrective manner. It's sticking over 1.4597 resistance turned support. Breach of 1.4977 resistance will indicate ending of this drop and align a repeat test of 1.5257 maximum. If that happens, the cross might extend the rally from 1.3782 towards the maximum of 1.6103. Sustained breach of 1.4597 will shift attention to the support zone of 1.3782/4051.
Australian Westpac consumer confidence increased 0.4% this month. Japan domestic CGPI lifted 2.1% yoy in prior month. Britain will release job data and the Eurozone will announce industrial production.