All eyes are on the ECB today where President Draghi is expected to announce a massive stimulus plan in its next round of quantitative easing. A cut in Deposit Facility Rate to -0.50% is expected together with more bond buying. The latest Eurozone industrial production figures disappointed and showed a steeper contraction than expected. Inflation remains absent which may give the ECB reasons to worry down the road. With a dovish ECB priced in, can bulls power ahead in the EURCAD following the press conference? Subscribe to the PaxForex Daily Fundamental Analysis and earn more pips per trade.

The Canadian Dollar has enjoyed a bullish tailwind as OPEC is trying to reduce oil supply in order to increase prices. The strength in the EURCAD was additionally driven by weakness in the Euro. As bearishness in the Euro appears to have peaked, is a short-covering rally brewing in this currency pair? Canadian economic data is expected to show further weakness in its housing, how will this impact consumer confidence? In a slowing global economy which pressure commodity prices lower, the Canadian Dollar may struggle to maintain its bullish stance. Is now a good time to short the EURCAD? Today’s fundamental analysis will take a look at the upside potential of this currency pair and evaluate the downside risk.