The Canadian Dollar to Euro exchange rate (CAD/EUR) weakened on Friday with the Canadian dollar falling against many of its other peers as investors grew impatient waiting for moves by the Chinese authorities in taking action to bolster the world’s second largest economy.
The markets grew jittery on Friday as they waited for an indication as to whether the Chinese would pump stimulus into its economy following the release of a number of disappointing economic data releases. The theory that monetary stimulus would be introduced was first raised earlier in the week and picked up support as the week progressed despite a number of economists saying that it was unlikely to happen.
The ‘Loonie’ was also softened by the release of mixed data out of the USA which suggested that the world’s largest economy is picking up speed at a moderate pace. Losses against the US currency were limited however after commodities were higher as May crude on the New York Mercantile Exchange climbed 57 cents to hover near US$101.85 at US$99.75 a barrel.
The Euro was weaker early in the session as concerns over inflation in the Eurozone reared there head again after inflation data out of Spain and Germany disappointed.
A report released y the German Federal Statistics Office showed that German inflation slowed in March. Inflation was down by 0.9%, weaker than the 1% recorded in the previous month and increased expectations that the European Central Bank could introduce new monetary easing measures in order to tackle the threat of deflation.
After comments made this week by a number of ECB policy that monetary easing was a possibility we can expect the Euro to soften as next week’s policy meeting draws closer.
Euro (EUR) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Euro,
,US Dollar,1.3746 ,
Euro,,British Pound,0.8262 ,
Euro,,Canadian Dollar,1.5190 ,
Euro,,Australian Dollar,1.4866 ,
[/table]
