Canadian economy could sink 15% to 30% in Q2

Board of currencies
Yesterday, the Bank of Canada kept its benchmark rate at 0.25% as expected, while announcing a new bond purchase program of up to 50 billion Canadian dollars in provincial bonds and 10 billion in investment grade corporate bonds. Meanwhile, the central bank said the Canadian economy could sink 15% - 30% in the second quarter compared with the fourth quarter.

From a technical point of view, the pair has rebounded above its rising 50-day moving average (in blue) as the daily RSI stands within its buying area above 50. Readers may therefore consider the potential for further advance above horizontal support at 1.3775. The nearest resistance would be set at horizontal resistance at 1.4340 and a second one would be set at set at Mar. 19 top at 1.4670 in extension.

Source: TradingView, GAIN Capital

Related tags: Forex

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