ECB pledges, BoC punts
|The ECB kept the size of its EUR 1.85 trillion pandemic bond buying program, ut pledged to step up government bond purchases in the next few months to stem the sharp rise in bond yields and help support the economy. USD resumed its selloff both the DOW and S&P hit new highs, while Nasdaq is breaking above a key trendline resistance of 12980, now facing crucial resistance at 13120/30. All eyes shift to the 30-year US govt bond auction for clues on foreign demand for longer debt maturities.
The BOC offered few hints about what's coming next while holding rates steady. There was some speculation they could dial down the bloated QE program but most were waiting for new forecasts in April anyway. There's no doubt those forecasts will be better as the BOC acknowledged in its statement that the economy has been more resilient and said Q1 GDP will likely be positive. CAD initially slumped on no changes to QE but later rallied to finish near the best levels of the day on USD weakness, commodity strength and risk appetite. The risk is that's not enough of yields rise.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.