The Euro was firmer against both the Canadian Dollar and US Dollar on Monday as today’s Eurozone data showed that the rate of inflation in the single currency bloc remained unchanged in June and core inflation ticked up unexpectedly last month.
The Euro ticked higher after Eurostat said that the annual rate of Euro zone inflation was unchanged at 0.5% in June, marking the ninth consecutive month in which the inflation rate was below 1%.
The inflation rate remains well below the European Central Banks target of just under 2.0%.
Against the US Dollar the Euro was close to a three-week high as the ‘Greenback’ remains broadly weaker following last week’s worse-than-expected GDP data which showed that the world’s largest economy contracted sharply in the first quarter of the year.
The economy contracted by 2.9% in the first three months of the year as extreme winter weather hampered production.
The Canadian Dollar was also weakened by GDP data.
A report released today by Statistics Canada showed that the nation’s economy expanded by just 0.1% in April, below forecasts for a rise of 0.2%. The figure was unchanged from March’s figure of 0.1%.
On an annual basis the Canadian economy expanded by 2.1% in April, below forecasts for a growth figure of 2.3%.
Despite the negative GDP data the Canadian Dollar is not expected to weaken too much as the currency remains supported from last week’s better-than-forecast inflation data.
The strong figure has increased expectations that the Canadian Central Bank could move away from its neutral stance on monetary policy.
The Canadian Dollar was also softened by a fall in oil prices. Investors deemed that the crisis in Iraq has so far not impacted on the supply of the commodity which is Canada’s biggest export.
The Euro is likely to experience volatility on Tuesday due to a number of key data releases such as the latest German and Eurozone unemployment data, Eurozone Manufacturing PMI and a wealth of data from Eurozone member nations.
Euro Exchange Rate News:
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Euro,,US Dollar,1.3660 ,
Euro,,British Pound,0.8009 ,
Euro,,Australian Dollar,1.4540 ,
Euro,,Canadian Dollar,1.4591 ,