The Euro to Canadian Dollar exchange rate was trading in the region of 1.4891 on Thursday, up from the low of 1.4695 recorded at the start of the week.
While economic reports for both Canada and the Eurozone have been a little limited in recent days, the Euro to CAD pairing adopted a firmer footing ahead of tomorrow’s influential releases – which include Canadian inflation and retail sales figures and the Eurozone’s consumer confidence index.
The Euro to US Dollar pairing was also trading in a stronger position today.
As yesterday’s Federal Open Market Committee policy statement was such a disappointment, the US Dollar’s bearish relationship with the Euro looked set to continue no matter how today’s US initial jobless claims data came out.
Sure enough, the Euro to USD exchange rate held its notable advance for much of the European session on Thursday.
Although some modest Euro strength did occur as a result of the Eurozone’s rebounding construction output figure, the real reason for the common currency’s rally was the Federal Open Market Committee’s policy meeting.
As the level of consumer price inflation in the US has been rising more rapidly than economists anticipated, it was thought that the FOMC might mix things up a bit with this month’s fiscal statement.
However, rather than hinting that an interest rate increase is on the horizon, as Bank of England officials have been doing, the FOMC stressed that interest rates would remain at record lows until long after the tapering of asset purchases is complete.
Although a report published today showed that the number of people filing for initial jobless claims in the US came in below expected levels, the Euro/US Dollar exchange rate continued trending higher.
Euro (EUR) Exchange Rates
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Currency, ,Currency,Rate ,
Euro,,New Zealand Dollar,1.5633,