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Forex: EUR/CAD plunged below 1.3200 on Draghi, BoC rumors

FXstreet.com (Barcelona) - The EUR/CAD failed to hold at 1.3250 and breached below the 1.3200 mark with ECB Draghi’s willingness to do “anything” in his power to act accordingly to the economy’s needs, including to lower the deposit rate into negative figures. The EUR/CAD fell to as low as 1.3154 and remains around its lows. It’s being rumored that the BoC will announce its new Governor at 20:00 GMT.

The ECB decided to cut its refi rate by 50bp to 0.50% and the the marginal lending facility rate by 50bp to 1.00%. The deposit rate remained unchanged at 0.00%.

The EMU manufacturing PMI dropped slightly from 46.8 to 46.7, but analysts were expecting 46.5. The German figure eased from 49.0 to 48.3, instead of 47.9. The Italian number rose from 44.5 to 45.5, above 44.8 expected. The Spanish PMI came in higher, from 44.2 to 44.7 in April, beating 44.5 consensus. The Greek manufacturing figure rose from 42.1 to 45.

Canada international merchandise trade moved from $-1.25B deficit to $0.02B surplus in March, beating analysts’ consensus of $-0.72B, with both exports (from 38.52B to 40.47B) and imports (from 39.77B to 40.45B) rising above expectations, of 36.76B and 39.63B, respectively.

The EMU manufacturing PMI dropped slightly from 46.8 to 46.7, but analysts were expecting 46.5. The German figure eased from 49.0 to 48.3, instead of 47.9. The Italian number rose from 44.5 to 45.5, above 44.8 expected. The Spanish PMI came in higher, from 44.2 to 44.7 in April, beating 44.5 consensus. The Greek manufacturing figure rose from 42.1 to 45.

On the downside, supports might be found at 1.3100, 1.3077 (April-5 low) and the 1.3000 psychological level. On the upside, resistance may occur at 1.3200 mark, 1.3250 line and the 1.3300 handle.

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