Forex markets are yet to break out of the recent ranges; something that many expected last week with the ECB and BOE rate cut decisions...
Today, the Bank of Canada slashed rates 75 bps to a 50-year low of 1.50%, bringing the USD/CAD differential to 0.5% and the EUR/CAD differential to 1%. What this means is that there really is no carry trade effect in either currency pair and markets will remain locked in the recent range until something else surfaces...
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