The Euro to Canadian Dollar (EUR/CAD) exchange rate was trading lower in the European session ahead of Eurozone Industrial Production stats.
Earlier… The Euro to Canadian Dollar (EUR/CAD) exchange rate jumped by over 0.50% in the first half of Monday’s European trading despite the price of crude oil improving, which ordinarily would offer the ‘Loonie’ commodity currency some support.
Oil Price Rally Unlikely According to ANZ – Canadian Dollar (CAD) under Pressure
Crude oil, Canada’s largest commodity, was offered some support on Monday as investors priced in higher values in the near future.
However, ANZ bank stated: ‘Speculative market participants appear to be calling for a bottom in oil prices.’
‘Although there are tentative signs of demand improving and rig counts fell to the lowest level since 2010, an ongoing global market surplus – driven by swelling US inventories (the biggest weekly jump since March 2001) and Saudi Arabian output to record high levels – should limit any potential rally.’
This week, the Bank of Canada (BOC) is scheduled to announce its latest interest rate decision—a move that’s likely to weigh on the Canadian Dollar to Euro (CAD/EUR) exchange rate as investors price in the likelihood of another cut.
Although employment levels are stabilising, some economists have suggested that the labour market may be of particular concern to BOC policymakers as employment remains at multi-year lows.
Wednesday will see the BOC announce its decision and therefore the Canadian Dollar to Euro (CAD/EUR) exchange rate could be in for a choppy day of trading around the event.
Meanwhile, the Euro is trading tentatively as negotiations between Greece and its creditors begin again in Athens and Brussels today. The talks are in preparation for the finance minister meeting on the 24th April.
Euro to Canadian Dollar (EUR/CAD) Exchange Rate Forecast
However, despite Monday being an extremely quiet day for data, the rest of the week will hold more excitement for the Euro to Canadian Dollar (EUR/CAD) exchange rate. The European Central Bank (ECB) is expected to publish its bank lending survey on Tuesday and Eurozone Industrial Production data will shortly follow.
Wednesday’s European Central Bank interest rate decision could cause some major movement for the Euro to Canadian Dollar (EUR/CAD) exchange rate as investors anticipate the following press conference. Any hawkish comments from ECB President Mario Draghi could bolster the Euro significantly, while dovish tones could pressure it lower.
Canadian Manufacturing Sales and Existing Home Sales figures are also out on Wednesday ahead of the Bank of Canada interest rate announcement.
The Canadian Dollar to Euro (CAD/EUR) exchange rate is trading at 0.7509; the Euro to Canadian Dollar (EUR/CAD) exchange rate is trending in the region of 1.3324.
