Trouble for EUR/CAD, EUR/NOK: Q2 Top Trading Opportunities 2021-04-08 21:30:00 Daniel Moss, Analyst
Central Bank Divergence, Resilient Oil Prices Spell Trouble for EUR/CAD, EUR/NOK Advertisement
The Euro has lost a significant amount of ground against the commodity-sensitive Norwegian Krone and Canadian Dollar in the first quarter of 2021. The EUR/NOK and EUR/CAD exchange rates declined 4.5% and 4.9% respectively. These losses appear to stem from the divergence in the European Central Bank’s outlook for monetary policy compared to the Bank of Canada and the Norges Bank.
The ECB moved to increase the pace of its emergency-bond buying program at its monetary policy meeting in March, to dampen the marked rise in government bond yields and preserve easy financing conditions. In stark contrast, Norway’s central bank has stated that it will start raising interest rates at the back end of this
The Euro has lost a significant amount of ground against the commodity-sensitive Norwegian Krone and Canadian Dollar in the first quarter of 2021. These losses appear to stem from the divergence in.