Morning Everyone,

Yesterday began the start of a couple of big days on the economic data front. The Bank of Canada was in focus for yesterday with their interest rate decision and as expected they left rates unchanged. However, the talk around the announcement was that they were going to be cautious on any changes going forward.

That was enough to put some serious pressure on the CAD and it fell against the USD, pushing price up through the 1.2700 mark that we discussed yesterday.

Today all the focus turns to the ECB and what Mario Draghi has in store for us. Again interest rates will likely remain unchanged, however, much of the focus will be on how they change their bond-buying program.

The US Dollar weakened a touch yesterday and we saw some pullbacks in the USD/JPY and the EUR/USD strengthen. The 94.00 level has really been providing some strong resistance so far and until we can break through I think the USD will remain under pressure. The key event will be US GDP which is due for release on Friday so it might take us until then to get enough momentum to break higher.

US Dollar Index (DXY) – 240 min Chart.

Top Economic Data for the Week

Thursday

EUR – ECB Interest Rate Decision

USD – Pending Home Sales

Friday

USD – GDP