At midday the Euro softened from a four-year high against the Canadian Dollar to a five-day low as concerns over the health of the global economy triggered a bout of safe haven buying.
Concerns were mounting that the Eurozone could be hit by the turmoil currently disrupting the world’s emerging market. The Euro slipped to a session low against several major peers before regaining most of its lost ground.
The Euro shook off the concerns after European Central Bank Governing Council member Christian Noyer said that the turmoil currently impacting emerging markets would not spread to impact upon the Eurozone’s economic recovery. The turmoil began following the release of weaker than expected manufacturing data in China, investors panicked as speculation mounted that the global recovery was slowing. As a result, currency’s like the Lira and Rand fell to multi-year lows.
“Generally speaking the IMF has just revised upward its global growth forecast, so there’s no particular reason that Europe should be affected by the problems encountered by a small number of countries,” said Noyer.
The Canadian Dollar meanwhile managed to recover some ground against a number of peers after it found continuing support from last Friday’s stronger than expected inflation data. The currency also found support after there were some signs of stabilization among emerging markets.
Tensions eased after Turkey’s central bank said it would hold an extraordinary policy meeting on Tuesday to discuss measures to ensure price stability. The announcement came after the Lira hit the latest in a series of record lows against the US Dollar.
Canadian Dollar (CAD) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Canadian Dollar,,Euro,0.6610 ,
Canadian Dollar,,British Pound,0.5455 ,
Canadian Dollar,,US Dollar,0.9041 ,
Canadian Dollar,,Australian Dollar,1.0329 ,