The EUR/CAD pair has given up some of its gains after a four-day rally, after reaching a key resistance level of 1.5050. Trump’s strategic oil stockpiling plan is likely to impact Canadian export revenues.
Investors are awaiting the release of Canadian Consumer Price Index (CPI) data, which will have a significant impact on the economy.
Trump has hinted at raising tariffs to address the trade imbalance with Europe, which will put additional pressure on the Eurozone. The stability of the Canadian dollar could be affected by the BoC’s likely move towards a rate cut.
The European Central Bank (ECB) is likely to cut interest rates in its next four policy meetings.
Experts believe that the Canadian economy will have to deal with US rate hikes. The 1.4950 support level and 1.5050 resistance level are important for further movements in the EUR/CAD pair. The Canadian export sector is likely to be affected by Trump’s tariff plans. The BoC is expected to cut interest rates on a large scale, which will put pressure on the Canadian dollar.
