Everything has been coming up roses for the euro in recent weeks, as speculation regarding a potential tapering in bond purchases by the European Central Bank has resumed. The single currency has broken through important technical levels against the greenback to reach its highest level since late 2014. It should also be noted that speculative “euro buyer” positions are at an all-time high.
Against the loonie, the euro has gained more than 300 points since Jan. 9. The volatility that is characteristic of the EUR/CAD pair should also be kept in mind. Whether you’re looking to buy or sell euros, we advise that you take advantage of opportunities as they arise, since they could disappear quickly.
On Wednesday, the Bank of Canada will announce its key rate decision. Markets are currently pricing the likelihood of a rate hike at 83%. The decision and the ensuing explanation could have a substantial impact on major asset classes (currencies, interest rates and commodities).
Julien Duquette
Range of the day: 1.2400 – 1.2485