The Euro to CAD pairing approached the close of a comparatively quiet European trading session in a slightly stronger position.
The Canadian Dollar largely held Friday’s employment-report inspired gains over the weekend and extended its advance against its major peers after the Liberal party returned to power in Quebec.
However, the ‘Loonie’ did come under some pressure yesterday as Canadian housing starts and building permits figures fell well short of estimated levels, with building permits sliding by a staggering 11.6 per cent in February rather than dropping the 2.6 per cent expected.
Since the Bank of Canada adopted a more dovish stance the Canadian Dollar has steadily weakened and a recent poll has shown that domestic small business owners are becoming increasingly concerned by the currency’s performance.
A poll conducted by Leger showed that over a third of small business owners in the nation feel that the weaker local currency could have a negative impact on their business.
86 per cent of importers expressed concern regarding the Canadian Dollar exchange rate.
According to Shelley Swanlund CIBC Vice President Shelley Swanlund; ‘Our poll shows that some small business owners in Canada are feeling the pinch from the falling Loonie, which can impact profits and make it harder to compete in certain industries. Many small businesses have become accustomed to a strong Dollar, which may explain why many have not considered steps to protect their cash flow and react to the Dollar’s decline.’
The Euro meanwhile was trading in a fairly narrow range against its major rivals.
The common currency did falter slightly following the release of disappointing German trade data, but declines were modest and short lived.
If the minutes from the March Federal Open Market Committee meeting are less hawkish than those from February (which is likely given the patchy nature of economic reports from the US) the ‘Greenback’ could soften and higher-risk currencies like the Euro may advance.
The EUR/CAD pairing could also experience volatility tomorrow following the release of the European Central Bank’s monthly report and Canada’s new housing price index.
Euro (EUR) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Euro,,British Pound,0.8243 ,
Euro,,New Zealand Dollar,1.5895, img src=”http://www.euroexchangeratenews.com/wp-content/themes/eern/images/arrow-down.gif”/>
Euro,,Canadian Dollar,1.5089 ,