EUR/CAD Stuck in Neutral Ahead of ECB Rate Decision
The EUR/CAD exchange rate has been trading without clear direction on Thursday as investors await the European Central Bank's (ECB) monetary policy decision.
Markets widely expect a 25-basis-point rate hike, putting the future monetary policy path in focus. Persistent inflationary pressures in the Eurozone could encourage Christine Lagarde to maintain a hawkish stance.
The EUR/CAD is trading around 1.6060 on Thursday at the time of writing, virtually unchanged on the day. Investors are refraining from taking large positions ahead of the ECB's decision, which is due at 12:15 GMT.
Attention will primarily focus on the monetary policy statement and any guidance regarding the future path of interest rates. The press conference by Christine Lagarde will be closely watched for clues on whether further rate hikes are necessary to contain price pressures or if the tightening cycle is nearing its end.