If central banks don't start cutting them soon, it could actually increase inflation 
Inflation: why prices look likely to stay high in the UK and Ireland, and what that means for mortgages 
Nasa to overhaul mission returning samples from Mars – here’s why it must and will go ahead 
Bank of England interest rate rise: why this could be the last increase for a while 
FxWirePro- Gold Daily Outlook 
Georgia is sliding towards autocracy after government moves to force through bill on ‘foreign agents’ 
TikTok and Instagram are full of misleading information about birth control 
Why central banks should stop raising interest rates 
Governments have been able to overrule the Reserve Bank for 80 years. Why stop now? 
Why central banks are too powerful and have created our inflation crisis 
FxWirePro- Gold Daily Outlook 
We are near-term neutral EUR despite a resolute ECB given softer data. ECB is a long way from hiking and trade tensions are worsening. On the flip side, NAFTA has become the dominant driving force for CAD in the near-terms, as the negotiation process has seemed to enter its end stage.
Technically, on a broader perspective, EURCAD’s major trend spikes through rising channel, but shooting star pops-up at stiff resistance at 1.5585 and 21EMAs, and hammer patterns at channel support (refer weekly plotting), both leading and lagging indicators signal faded strength. You could very well observe as and when the prices touched channel baseline and top line, the price pattern behaves in an adverse way.
EURCAD outlook:
While 1m IV skews have been well balanced on either side and signify the hedgers’ interests on both OTM call and put strikes. While the combination of 2w bearish neutral remains intact with shrinking IVs are conducive for writing any overpriced OTM calls. Use of three-legs option strategy would be a smart move to reduce hedging cost.
Options Strategy:
Contemplating above driving forces and OTC indications, we advocate initiating longs in 1M EURCAD at the money -0.49 delta put, and go long in at the money +0.51 delta call of similar expiry and simultaneously, short 2w (1%) out of the money calls. Thereby, we favor slightly on downside risks as short leg likely to reduce long legs.
Currency Strength Index: FxWirePro's hourly EUR spot index is flashing at 47 (which is bullish), while hourly CAD spot index was at -84 (bearish) at 14:04 GMT. For more details on the index, please refer below weblink:
