EURCAD Trade idea
CAD and BOC
EURCAD fundamental bias is bearish, but in the short term, it may push highs due to the BoC meeting on Wednesday, with expectations for a 95% hold on interest rates. July inflation in Canada rose to 3.3 percent from 2.8 percent previously and a forecast of 3 percent, while the core version was flat at 3.2 percent versus an expected decline to 2.8 percent. So a pause in interest rates could affect the CAD, while a surprise hike in interest rates cannot be ruled out.
Europe after mixed inflation data, there is still a lot of uncertainty about the central bank’s next interest rate decision. Nevertheless, today is likely to be calm, allowing the euro to advance.
We expect that before the Bank of Canada meeting, the price side action will be within the range for the upside.
Therefore, any low correction around 1.4653 can be a good opportunity to keep this pair until 1.04718