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After the shocking rate cut from the Bank of Canada earlier this week, the euro has successfully overtaken the Canadian dollar. The massive emergency rate cut from the BoC paralleled the earlier rate cut from the United States Federal Reserve, pressuring the beloved loonie in trading sessions. Bulls are looking to force the pair upwards in the foreign exchange trading, leaving to projections about the EURCAD pair reaching its resistance by the halfway point of the month. Yesterday, the Bank of Canada slashed its official interest rate by 0.5-point basis, easing it from 1.75% to just 1.25% to counter the effect of the novel coronavirus to the Canadian economy. Perhaps the recent contractions reported from the economies of the eurozone caused the pair to slow down in today’s trading. Nevertheless, a bullish fate awaits the pair ahead as the Bank of Canada’s recent rate cut strains the strength of the Canadian dollar.
The fate of the Australian dollar isn’t looking good at all in trading sessions. The Aussie is destined to continue weakening against the bloc’s single currency, resulting on a bullish run for the EURAUD exchange rate. Bulls are expected to take the pair higher and reach its resistance in the near-term trading. The recent rate cut of the Reserve Bank of Australia drained the gas tank of the Australian dollar, however, the recent positive results seen from the Australian economy prevent the euro from easily running away with gains. However, as the coronavirus remains uncontained, the Australian dollar remains susceptible and vulnerable to the impact of the deadly virus on the Chinese economy and the global economy. Yesterday, the Australian retail sales figures were released and while the results show gradual improvements, it remains on negative territories signaling contraction. Official data shows that Australian retail sales rose from -0.7% to -0.3%.
The British pound is looking to some of its recent losses against the Australian dollar and is hustling to force the GBPAUD pair higher despite the strong results from the Australian economy. It’s widely expected that bears will gradually pull the pair higher and possibly touch its resistance levels by the middle half of the month. The better-than-forecasted figures produced by the Australian economy in recent reports are making it for the British pound from running away with gains, but bulls remain optimistic as the pair steadily inch forward in sessions. Looking at it, the Australian dollar is also struggling to prevent the pair from climbing upward and is carrying the weight of concerns about the novel coronavirus. However, the question of whether the British pound could push the Australian dollar could breakthrough its resistance still stands as the BoE is also projected to ease its official rates by next month.
After the recent interest rate cut by the Bank of Canada, the British pound’s fate was finally assured. In fact, the recent interest rate cut was the cherry on top for the bulls who are looking to force the GBPCAD pair to its resistance in trading sessions. Its widely believed that the pair will reach its resistance level by the halfway mark of the month. The RBC manufacturing PMI which was released earlier failed to support the pair as the heavier rate cut outweigh the positive results produced by the Canadian economy. To make matters even worse for bears, the Canadian economy’s labor force is expected to contract. Looking at it, the scheduled report due later today, Canada’s unemployment rate, is expected to tick up by 0.1%, raising the nonworking count from 5.5% to 5.6%. Aside from that, the employment change for Canada in the month of February is expected to drop from 34.5K to around 10.0K later today.
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