Sell EUR/CAD at 1.5180 – Westpac

Analysts at Westpac are recommending to sell EUR/CAD cross at 1.5180 levels, for the target price of 1.4700, while maintaining a stop loss of 1.5300.

Key Quotes

“Rationale:

Recent Eurozone data underscored weakness in growth and a lack of inflation pressures in front of 24th January ECB meeting with only final CPI data for Dec. and ZEW surveys over the coming week.

Civil unrest in France, Italy’s banking sector refinancing and the resurfacing political and fiscal issues in Greece are likely to weigh on Eurozone sentiment in the absence of key data and CB silence in front of the ECB meeting.

Doubts about the BoC’s commitment to further policy normalisation continue to percolate but only a very bare +12bp in BoC hikes are now priced over their next six meetings to September 2019, a material decline from two months ago when rates markets discounted +70bp in BoC hikes over the same period.”