Risk Appetite Eases, BoC Decides on Monetary Policy

Risk Appetite Eases as Virus Accelerates Again

The dollar traded mixed against the other G10 currencies on Tuesday and during the Asian morning Wednesday. It gained against NZD, NOK, AUD and CAD in that order, while it underperformed versus JPY, CHF, GBP, and EUR. The greenback was found virtually unchanged against SEK.

Euro Stoxx 50 -Technical Outlook

The Euro Stoxx 50 index is still slowly grinding higher and recovering some of its losses made between mid-February and mid-March. Now the price is seen balancing above a short-term tentative upside support line taken from the low of March 18 th. As long as the index remains above that upside line, we will stay somewhat positive and aim for slightly higher areas.

Will the BoC Expand its QE Purchases?

Apart from headlines surrounding the coronavirus saga, today, market participants may also pay attention to the BoC monetary policy decision. On March 27 th, the Bank decided to slash interest rates to 0.25% and to launch a QE program in order to safeguard its economy from the effects of the coronavirus’s spreading. The Governing Council highlighted its readiness to take further action to support the economy and the financial system, but noted that the policy rate is now to its effective lower bound.

USD/CAD — Technical Outlook

USD/CAD continues to trend lower, while trading below a short-term tentative downside resistance line taken from the high of March 19 th. This week, the pair found some decent support near the 1.3855 hurdle, which continues to hold the rate from moving lower. In order to continue with the downside scenario, we need to see a break of that hurdle first, hence why we will take a cautiously-bearish approach for now.

As for the Rest of Today’s Events

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