Canadian Dollar stays firm in general after BoC left monetary policy unchanged yesterday, and delivered and slightly more upbeat outlook. While interest rate will remain on hold until into 2023, the central bank is ready to taper asset purchases if board members “gain confidence in the strength of the recovery”.
Suggested readings on BoC:
- BOC More Upbeat on Economy, Hinted to Taper as Outlook Continues to Improve
- BoC Leaves Overnight Rate Unchanged and QE Running at Current Pace
- BoC Holds Policy Steady; Tempers Optimism Amid Uneasy Bond Market
- (BOC) Bank of Canada will hold current level of policy rate until inflation objective is sustainably achieved, continues quantitative easing
EUR/CAD turned into consolidation after hitting as low as 1.4984 earlier this week. Some sideway trading could be seen but upside of recovery should be limited below 1.5208 support turned resistance to bring down trend resumption. Current down trend should target 161.8% projection of 1.5978 to 1.5313 from 1.5783 at 1.4707 on next fall.
