The EUR/CAD currency pair gained for a third straight trading day on Wednesday ahead of the outcome of the European Central Bank’s and the Bank of Canada’s policy meetings.
The European Central Bank is largely expected to keep its main refinancing operations rate intact at 2.15% at its March 19th meeting.
And, the ECB deposit facility rate is expected to be kept at 2.00%.
ECB President Christine Lagarde had said that monetary policy was in a “good place” and played down concerns that a stronger Euro could pose a risk to the inflation outlook.
Lagarde’s remarks suggested that interest rates were likely to remain steady for the foreseeable future.
The ECB President also warned that inflation figures could move unevenly in the coming months, but emphasized that policy decisions should not be driven by any single release of data.
Meanwhile, the Bank of Canada is expected to keep its benchmark interest rate intact at 2.25% at its March 18th meeting.
Policy makers had said the current stance was appropriate given the BoC’s baseline economic outlook.
Yet, recent tariff threats from the US brought back concerns of trade disruptions and prompted the Governing Council to warn of uncertainty, potentially warranting a monetary policy adjustment in either direction.
In its quarterly monetary policy report, the central bank maintained its forecast for modest growth this year and in 2027, while inflation is expected to hover around the 2% target.
The EUR/CAD currency pair was last up 0.11% on the day to trade at 1.5809.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
