The single currency fell by over -2.5% for the week which in turn saw the US Dollar gaining support. Most of the currencies closed the week lower against the Greenback. With the ECB's potential for expanding the QE now on the table, the fundamental interest rate differentials is back on the table, although doubts still linger on the course of the Fed's rate hike plans. However, in the near term, the Euro is expected to weaken regardless of whether the Federal Reserve would hike rates this year or not. The Bank of Canada's interest rate decision was another main event last week and despite the BoC holding rates steady, Governor Poloz revised down the economy's growth forecasts and signaled a period of interest rate stability into 2016.
Dovish Monetary Policy Prevails
Weekly Report - 26/10/2015