The Euro to Canadian Dollar (EUR/CAD) exchange rate has repeated its downtrend pattern today, seeing a loss of -0.8% against the ‘Loonie’ (CAD).
US GDP Data may Swing EUR/CAD Pairing Either Way
The Euro (EUR) has continued its overall decline today with the only positive performance being a fractional gain against the Japanese Yen (EUR/JPY). The global commodity currencies continue to show illogical uptrends despite the price of their exports plummeting; in the Canadian Dollar’s (CAD) case, the price of gold remains at its lowest point in 5 years and the price of oil is still scraping the worst value per barrel in over 10 years.
The Euro has the potential to gain on the ‘Loonie’ (EUR/CAD) later on today when the US Q2 GDP results are released. It is worth bearing in mind, however, that the usual formula of a strong ‘Greenback’ (USD) equalling a weaker Euro (along with commodity currencies) has been out of kilter this week, so even if the US GDP figures exceed expectations, this may not have the desired effect on the pairing.
The Euro (EUR) has dropped by -1.1% against the Canadian Dollar (EUR/CAD) today, though imminent data releases and events stand to reverse this current downtrend for the common currency.
Praet Speech and US Goods Orders may provide much-needed Boost to Single Currency Today
The Euro (EUR) has continued the softening process that it began yesterday after a (relative) improvement in the world stock markets displaced the single currency from its previous position of dominance on Monday.
The ‘Loonie’ (CAD) has remained strong across the board today, although upcoming events in Europe and the US may put the Canadian currency back down against the Euro (CAD/EUR). These are a speech by European Central Bank (ECB) Executive Board member Peter Praet in the city of Mannheim, and the release of the US Durable Goods Orders for July. Praet’s sentiment may go either way, but as a decline is currently predicted for the US result, anything overtly positive would upset expectations and possibly drive the Euro up against the Canadian Dollar (EUR/CAD).
The Euro to Canadian Dollar (EUR/CAD) exchange rate has dived today after the worst of ‘Black Monday’ failed to repeat itself.
EUR/CAD Exchange Rate News: Positive Eurozone Data fails to Raise Confidence in Single Currency
The Euro (EUR) failed to extend the wide range of advances seen yesterday and instead softened against most of its rivals today. The common currency fell by -1.6% against the Canadian Dollar (EUR/CAD) today and saw additional losses of -1.4% against the South African Rand and -1.7% against the Indian Rupee (EUR/INR). The Euro’s only gains have been a 0.3% rise against the Japanese Yen (EUR/JPY) and a 0.4% increase against the Swiss Franc (EUR/CHF).
This comes in spite of a wide range of Eurozone data releases showing positive results. The German annual Q2 GDP figures both showed 1.6% increases and the German IFO Assessments for August all showed improvement on forecast scores. The Euro has been let down this week by the Greek situation, however, as the nation remains without a head, and the last attempt to form a majority by New Democracy President Vangelis Meimarakis failed. Meimarakis was heavily critical of Former PM Alexis Tsipras for his actions, saying that Tsipras had put Greece on a ‘destructive path’ by calling elections and resigning only hours after the bailout had been secured.
‘Loonie’ Triumphs over Euro as Crude Oil Price Rises and Fed Rate Hike Hopes Fade
Against the odds, the Canadian Dollar (CAD) has risen by 1.7% against the Euro (CAD/EUR) today. This comes despite the price of crude oil bottoming out at below $39.00 per barrel yesterday, its lowest price in over 10 years. Canadian resources have had mixed fortunes today as while the price of oil has floated back up above the $39.00 mark, the supposedly climbing price of gold has dipped once again, falling from last week’s high of $1160 per 100 ounces to below $1150 today.
One major reason for the ‘Loonie’ doing well today is the fact that yesterday’s pandemonium was one of the greatest blows to the chances of a Fed interest rate hike that the US economy has received in recent memory. The ‘Greenback’ (USD) has continued to perform poorly today.
The Canadian Dollar has risen by over 0.5% against the Pound Sterling (CAD/GBP) and the US Dollar (CAD/USD) today; its only real loss was a -0.2% decline against the New Zealand Dollar (CAD/NZD).
EUR/CAD Exchange Rate Forecast: US Confidence and ECB Speeches may allow EUR/CAD Rebound
Despite the Canadian Dollar’s (CAD) major gains against the Euro (CAD/EUR) today, the future is less bright for the ‘Loonie’. Writing on the future effects of ‘Black Monday’ on Canada’s economy, Lucas Powers, a writer for the Canadian Broadcasting Corporation (CBC) forecasted that ‘…historical [Chinese] internal reforms could considerably lower demand for many of the things Canada is offering’ in the future.
More immediately, the Euro stands to rise against the ‘Loonie’ if the US Consumer Confidence Index for August comes in with a strong positive; predictions are for an increase from 90.9 points up to 93.4. Two planned speeches by European Central Bank (ECB) members today and tomorrow may further contribute to a rally for the common currency.
Current EUR, CAD Exchange Rates
The Euro to Canadian Dollar (EUR/CAD) exchange rate was trending in the region of 1.5155 and the Canadian Dollar to Euro (CAD/EUR) exchange rate was trending in the region of 0.6609 today.