The Euro strengthened to its highest level since December 2009 against the Canadian Dollar on Wednesday as comments by ECB officials buoyed the single currency and a fall in commodity prices weighed upon the ‘Loonie’.
The Canadian Dollar fell as concerns over the growth prospects for the Canadian currency waned as poor data from data from China damaged the prospects for the global economy. Data released over the weekend showed that Chinese exports tumbled by 18% last month. As a result of that report commodity prices fell.
Ongoing political tensions in Ukraine have also played its part in weakening the Canadian Dollar. As the standoff between the west and Russia continues demand for riskier commodity based assets continues to be weak.
Canada’s biggest export of crude oil has seen prices steadily fall throughout the week with the value of a barrel of crude falling to below $100 per barrel.
The Euro meanwhile surged against its major peers after ECB board members said that they don’t see a threat from deflation in the Eurozone. As a result the single currency climbed to a 2 ½ year high against the US Dollar and pushed higher to its strongest level of the year so far against the Pound.
ECB board member Benoit Cœuré said in an address to a conference in Frankfurt said that the ECB does not see deflation in the region, but the risk remains and the ECB is ready to act should the need to respond arises.
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,1.5502 ,
Euro,,British Pound,0.8360 ,
Euro,,Australian Dollar,1.5500 ,
Euro,,Canadian Dollar,1.5467 ,