Yesterday’s trade saw EUR/CAD within the range of 1.4119-1.4243. The pair closed at 1.4155, down 0.29% on a daily basis, which marked a third consecutive daily loss.
At 7:41 GMT today EUR/CAD was down 0.23% for the day to trade at 1.4122. The pair touched a daily low at 1.4119 at 7:39 GMT.
Fundamentals
Euro area
Economic Sentiment by the ZEW
The gauge of economic sentiment in Germany probably improved to 55.0 in February, according to the median forecast by experts, from 48.4 in January. If so, this would be the highest index reading since February 2014, when it was reported at 55.7.
In October last year the index entered into negative territory for the first time since November 2012, slipping to -3.6.
The ZEW (Zentrum für Europäische Wirtschaftsforschung) economic expectations index is published on a monthly basis. The study encompasses up to 350 financial and economic analysts. The indicator reflects the difference between the share of analysts, that are optimistic and those, that are pessimistic about the expected economic development in Germany over the next six months. A positive value indicates that the proportion of optimists is larger than that of pessimists. A ZEW reading of -100 suggests that all analysts are pessimistic about the current developments and expect economic conditions to deteriorate. A ZEW reading of 100 implies that all analysts are optimistic about the current situation and expect conditions to improve. A ZEW reading of 0 indicates neutrality.
The index of current assessment in Germany probably rose to a value of 30.0 in February from 22.4 in the prior month. If so, this would be the highest level since August 2014, when a value of 44.3 was reported.
The ZEW Economic Sentiment index for the whole Euro zone probably continued gaining ground in February, reaching 52.0. If so, this would be the highest level since June 2014, when the indicator came in at 58.4. In January the index stood at 45.2.
In case the gauge of economic sentiment exceeded expectations, this would certainly have a positive impact on the common currency. The official data is scheduled to be released at 10:00 GMT.
Canada
Foreign investment in Canadian securities
Foreign portfolio investment in Canadian securities probably expanded to CAD 5.1 billion in December, according to the median forecast by experts, from CAD 4.29 billion in November. The latter has been the lowest flow of portfolio investments since January 2014, when it was reported to have amounted to CAD 1.22 billion. This indicator reflects the flow of incoming investments in the local stock, bond and money markets. An increasing flow of foreign investments is usually related with a positive economic outlook for the country being invested in. This usually increases demand for its currency and vice versa. Therefore, in case portfolio investment in Canadian securities increased more than anticipated, this would have a certain bullish effect on Canadas dollar. The official report by the Statistics Canada is due out at 13:30 GMT.
Pivot Points
According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.4172. In case EUR/CAD manages to breach the first resistance level at 1.4226, it will probably continue up to test 1.4296. In case the second key resistance is broken, the pair will probably attempt to advance to 1.4350.
If EUR/CAD manages to breach the first key support at 1.4102, it will probably continue to slide and test 1.4048. With this second key support broken, the movement to the downside will probably continue to 1.3978.
The mid-Pivot levels for today are as follows: M1 – 1.4013, M2 – 1.4075, M3 – 1.4137, M4 – 1.4199, M5 – 1.4261, M6 – 1.4323.
In weekly terms, the central pivot point is at 1.4195. The three key resistance levels are as follows: R1 – 1.4324, R2 – 1.4473, R3 – 1.4602. The three key support levels are: S1 – 1.4046, S2 – 1.3917, S3 – 1.3768.
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