On Wednesday, April 21, at the end of the day, the euro closed at the close of Tuesday. The price bounced from 1.1998 after the Central Bank of Canada signaled an interest rate hike in 2022 and scaled back its asset purchase program. The Bank of Canada also sharply raised its economic outlook. The Canadian has strengthened against the dollar by 174 points, to 1.2460. All major currencies unfolded after him.
Scheduled statistics (GMT +3):
- 13:00 Britain will release the balance of industrial orders according to the Confederation of British Industrialists.
- 14:45 in the eurozone, the ECB's decision on the interest rate will be announced, and at 15:30 the ECB will hold a press conference.
- 15:30 Canada is to publish its March New Home Price Index. 15:30 the US will announce a change in the initial claims for unemployment benefits.
- 17:00 the US will report on the change in home sales in the secondary market for March and will release an index of leading indicators for March. the eurozone will present an indicator of consumer confidence for April.
Current situation:
After a 13-hour correction, the Canadian strength continued. USD/CAD fell to 1.2473. The Bank of Canada's push to tighten monetary policy could be a harbinger of change from other central banks.
Following the strengthening of the Canadian, the euro recovered to 1.2045. Buyers are set to break through resistance at 1.2050 (45 grams) to resume growth to 1.2080. Further growth is supported by the weakening of the dollar against the Canadian, as well as the fall in the yield of 10-year US bonds to 1.531.
The weakening of the US dollar is being curbed by the rise in COVID-19 cases in India and Japan. Investors fear new lockdowns and new waves in other countries.
Technical pictures on the hourly TF are favorable for buyers. Buyers can restrain the upcoming meeting of the ECB and the press conference of the head of the ECB K. Lagarde. The US Federal Reserve will meet next week. Neither the ECB nor the Fed is expected to signal a change in their plans. If the yield on US10Y falls below 1.525% per annum, then the euro is expected to rise to 1.2080.