Global macro overview for 14/04/2016:
The Bank of Canada maintained its key interest rate at 0.5% yesterday, just in line with market expectations. In the press conference, the BoC has justified its decision, saying the last quarter GDP growth was solid, but in their opinion is was merely a temporary improvement and it is very likely that effects will wave in the second quarter. Moreover, the BoC admitted that the Canadian economy is still trying to adjust to the current low oil price levels and they lowered the GDP growth projections for this year. In conclusion, the BoC is nowhere near the rate hike as the GDP is still not strong enough and the global headwinds might get even worse in the future.
Let's now take a look at the EUR/CAD technical picture on the daily timeframe. We can see the market just bounced from the important technical support at the level of 1.4390, but still trades below the 21,100 and the 200 DMA. Moreover, the long-term uprising dashed blue trendline had been broken as well, which supports the bearish outlook for this pair. The next support is seen at the level of 1.4031.
