The Euro has made minor gains against the Canadian Dollar today, remaining close to the best rate seen since mid-November 2016.
- EUR CAD rate advances to 1.45 – CAD EUR rate drops to 0.68
- Euro rises despite mixed industrial figures – US weakness keeps EUR in demand
- Canadian Dollar dips on federal budget concerns – Lack of ambition criticised
- Euro advance possible on confidence figures – Further CAD weakness forecast on US remarks
While the EUR CAD exchange rate has improved, this has come despite monthly Italian industrial orders and sales sliding in January. Annual industrial sales have also slowed, but on the bright side, annual orders have risen from -0.9% to 8.6%.
Canadian Dollar losses have followed further scrutiny of the recent federal budget. Most criticism has been levelled at the government’s desire to maintain the status quo, as well as its complacency about expanding debt and deficits.
The Euro has a chance to extend its gains against the Canadian Dollar on Wednesday, when French and Italian confidence scores are released. In both cases, no change is forecast so an unexpected rise could boost EUR demand.
Looking further ahead, Thursday will bring Eurozone confidence scores for March. The high-impact business confidence figure is forecast to rise along with economic sentiment, but a drop is predicted for the industrial sentiment figure.
Inflation will end the week’s notable Eurozone announcements, covering German figures on Thursday and Eurozone-wide stats on Friday. For the Eurozone figures, a forecast-matching dip in annual inflation could weaken the Euro as it would signify lower chances of a European Central Bank (ECB) interest rate hike.
Apart from incoming remarks from Bank of Canada (BOC) Governor Stephen Poloz, the Canadian Dollar is next likely to be moved by US news.
Following Poloz’s remarks, US Federal Reserve Chair Janet Yellen will also be giving a speech. As the head of the US central bank, Yellen is an influential figure who can trigger US Dollar gains or losses based on her comments.
If Yellen echoes other recent Fed comments and supports another near-term US interest rate hike the US Dollar could strengthen, weakening the Canadian Dollar in the process.
The last Canadian news of the week will be Friday’s GDP stat for January. This is predicted to remain at 0.3%, so the data may not cause any major CAD EUR movement.
Current Interbank EUR CAD Exchange Rates
At the time of writing, the Euro to Canadian Dollar (EUR CAD) exchange rate was trading at 1.45 and the Canadian Dollar to Euro (CAD EUR) exchange rate was trading at 0.68.