All eyes on the European Central Bank
Yesterday, the Bank of Canada surprised investors by keeping its key rate unchanged despite the substantial slide in crude oil prices and potentially negative consequences for the Canadian economy. The BoC also downgraded its growth projections for 2016 to 1.5%. This morning, the loonie has stabilized at its strongest level in the past four days, ending its 13-day losing streak against the greenback.
This morning, we’ll be keeping an eye on the European Central Bank’s key rate decision at 7:45. Judging by the generalized bullishness on European stock markets this morning, investors very much expect the ECB to maintain its expansionary bias, keeping its financing rate stable at 0.05%. An increase in support measures would no doubt bring down the single currency somewhat, after it has served as a safe haven since the beginning of the year.
