The Euro to Canadian Dollar (EUR/CAD) exchange rate advanced by around 0.48% on Tuesday morning.
After having declined significantly amid fears that the election of the far-left Greek political party, Syriza, would lead to a Grexit, the common currency rebounded on Tuesday as the anxieties were seen as unwarranted. The new coalition is certainly an anti-austerity movement, but they are unlikely to force an exit from Europe.
The Canadian Dollar, meanwhile, is fluctuating versus it major peers thanks to commodity price volatility. With the decline in oil slowing, the Canadian Dollar has seen some appreciation, albeit minimal.
The Euro to Canadian Dollar (EUR/CAD) exchange rate is currently trending in the region of 1.4106.
The Euro to Canadian Dollar (EUR/CAD) exchange rate strengthened by around 0.97% on Monday morning.
After the Greek political party Syriza gained office, the single currency slumped versus all 16 of its major peers. However, with Syriza unable to gain the necessary support which would allow the party full power over policies, the shared currency gained on prospects that a coalition would make a Grexit very unlikely.
The Canadian Dollar, meanwhile, softened versus the majority of its most traded rivals on Monday thanks to continued declination in oil prices.
The Euro to Canadian Dollar (EUR/CAD) exchange rate is currently trending in the region of 1.4022.
Euro (EUR) Exchange Rate Gains on Pared Grexit Bets
The Euro recovered some of its losses after it was revealed that the anti-austerity political party Syriza would be part of a coalition. Although the Independent Greek Party is also an anti-austerity party, most experts agree that a shared government is unlikely to agree on major policy changes.
Jeroen Dijsselbloem, the Dutch president of the Eurogroup, stated; ‘We stand ready to work with them, as we have with previous Greek governments, to strengthen the Greek economy within the Eurozone.’
German economic data printed positively on Monday which has aided the Euro uptrend. The German IFO Business Climate, Current Assessment and Expectations data publications all improved upon previous figures in January.
The Euro to Canadian Dollar (EUR/CAD) exchange rate has fallen to a low today of 1.3873.
Canadian Dollar (CAD) Exchange Rate Dives on Oil Glut
With oil prices having fallen near to a 6-year low as Saudi Arabia holds firm with their current policy, the supply glut has seen market sentiment significantly dampened. The commodity-correlated Canadian Dollar softened versus the majority of its most traded competitors as a result of risk-aversion strategies in the currency market.
‘All the indications from the Saudis point to no major policy changes,’ Ole Hansen, an analyst at Saxo Bank stated. ‘The market’s focus remains on supply that isn’t being met by demand.’
Euro to Canadian Dollar (EUR/CAD) Exchange Rate Forecast to Hold Gains
Although the shared currency is likely to experience significant volatility as the new Greek coalition makes moves to alter austerity, the continued declination in oil prices is likely to see the Euro to Canadian Dollar (EUR/CAD) exchange rate remain trending higher on Monday.
The Euro to Canadian Dollar (EUR/CAD) exchange rate advanced to a high today of 1.4044.