The downtrend continues. The euro has no chance against this commodity currency today, since resources are now more expensive, and the Canadian economy is in the best possible position, being far distant from an unstable and warring Europe. The monetary policy of the EU and Canada also contributes to a further raid of CAD, as the ECB at its last meeting did not meet investors' expectations. Everyone was disappointed by the decision to leave the rate unchanged amid high inflation. The prospect of an increase in the future is also low, given that many of the restrictions imposed on Russia are quite expensive to the EU economy. and it will become impossible to tighten monetary policy in these conditions. The economic perspective is also questionable.
Oil is getting cheaper this week amid lower forecasts for global economic growth.T This puts downward pressure on the value of the CAD because investors may begin to sell riskier assets in search of a safe "harbor."At the same time, the data published on Monday on China's GDP growth in the 1st quarter above forecasts still supports risk appetite.
The focus of investors' attention is on inflation reports in Canada. On Wednesday it became known that the consumer price index in March amounted to 6.7%, which is the highest rate of inflation in the country for 31 years. This increases the likelihood of an increase in the rate by the Bank of Canada. The IMF meeting is also in the spotlight.
While we were writing this review, the Canadian dollar has already revised the chart's minimum and is gradually lowering the support line.. Most technical analysis tools indicate the effectiveness of the deals in favor of the Canadian dollar, despite the likelihood of a price correction, after a continuous 7-day raid. Without any doubt, today we are buying the Canadian dollar and fixing a profit.
