EUR/CAD hits a 15-month low after the Bank of Canada raises rates to 2.50% and signals further hawkish policy, driving the Canadian Dollar higher toward the 1.5000 support level.
The EUR/CAD pair has reached a 15-month low following the Bank of Canada's decision to raise interest rates to 2.50% and its subsequent upward revision of inflation forecasts. This hawkish policy shift has strengthened the Canadian Dollar, putting significant downward pressure on the pair as it tests the 1.5414 support level.
The next major psychological level is 1.5000, which is the target following the break of the 1.5414 support.
OIS pricing suggests approximately 52% odds of another interest rate hike occurring in December.
The EUR/CAD pair dropped to a 15-month low following the Bank of Canada's decision to hike interest rates to 2.50%. The central bank's aggressive revision of inflation forecasts has strengthened the Canadian Dollar, putting the 1.5000 psychological level in focus for traders.
The Canadian Dollar is strengthening due to the Bank of Canada's decision to raise interest rates to 2.50% and its hawkish stance on future inflation, which contrasts with the Euro's current weakness.