EUR/USD claims 1.45 levels, ECB’S Stark reiterates hawkishness. BoC leaves rates on hold. Early rate hike expectations get dampened by lower UK CPI reading.

The Euro pares earlier losses against the USD claims 1.45 levels.

EUR/USD initially drifted lower to today’s low at 1.4377 but has managed a brisk recovery and made new daily highs at 1.4517. We have last seen these levels way back in January 2010.

Comments from the ECB’s Stark and Fed’s Dudley could have helped the Euro higher as Stark sounded more hawkishness reiterating higher than target inflation for 2011, and a stronger than expected Q1 growth. While Dudley said that Q1 US economic Growth will likely disappoint and continued to sound doubts and discontent over labour market growth.

On the daily charts the rising channel seen from lows made February 14th of the current year remains intact. On a weekly time frame we see resistance at 1.4565/1.4673.

BoC keeps rates on hold as expected

Immediately after the decision was published the USD gained 40 pips against the CAD in a matter of a few minutes.

So far the currency pair has traded in the range of 0.9556-0.9636.

Weaker UK CPI dampens speculation for an earlier rate hike

Weaker CPI reading from the UK earlier this morning disappointed those betting on a sooner rate hike at the time of the release the reached out for new daily lows at 1.6228. So far the GBP seems to be track to pare back the losses made after the release as it is currently trading at 1.6321 close to the levels traded prior to the release.