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Euro holds steady vs Canadian dollar ahead of ECB decision

EUR/CAD is trading around 1.6060 as investors wait for the ECB, widely expected to lift its deposit rate by 25 bps to 2.5%.

Reported · Written up by our desk · Central Banks

EUR/CAD was little changed on Thursday, trading around 1.6060 as traders held back on larger positions ahead of the European Central Bank monetary policy decision scheduled for 12:15 GMT, according to FXStreet.

Market expectations are centered on a 25 basis point increase in the ECB Deposit Facility Rate to 2.5%, with investors looking beyond the headline move to the policy statement and any guidance on the future path of interest rates.

FXStreet said attention will also fall on ECB President Christine Lagarde’s press conference for signals on whether further rate hikes remain necessary to contain price pressures or whether the ECB is preparing to slow its tightening cycle.

The buildup comes as Eurozone inflation accelerated, with annual inflation rising to 3.3% in August from 2.9% the prior month, keeping pressure on the ECB to maintain a restrictive stance.

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