The Euro (EUR) has greatly expanded its gains against the Canadian Dollar (EUR/CAD) today, having risen since earlier to 1.2% against the beleaguered Canadian currency.
Bank of Canada (BOC) Speech due Shortly, along with Later Canadian PMI Data
The next economic events likely to have an impact on the pairing will be the imminent speech given by BOC Governor Stephen Poloz in Ottawa, along with the later Canadian Ivey Purchasing Managers Index that has been seasonally adjusted for December.
The Euro (EUR) has made a gain of 0.7% against the Canadian Dollar (EUR/CAD) today, something likely caused by supportive Germany Factory Orders and the unending decline in the price of crude oil per barrel, which has hit $32.52.
German Retail PMI Imminent ahead of Wider Eurozone Results
The next movement in the EUR/CAD pairing is set to come from the former side, given that no Canadian data is due until the afternoon. The Eurozone’s data will be comprised of Germany’s December Retail PMI, as well as the later Eurozone-wide Retail Sales and Unemployment Rate results for the month of November.
The Euro (EUR) has improved the EUR/CAD exchange rate since earlier by hitting a high of 0.6% against the Canadian Dollar (CAD), although this is thought to actually be due to strong US economic publications.
US Employment Rate Stats could Foreshadow Major Canadian Dollar (CAD) Dive on Friday
Although the Canadian Dollar (CAD) does have a number of economic releases due before the weekend, it seems that it may be overshadowed and cast down by Friday’s US Unemployment Rate result for December. Today has seen the ADP Employment Change for December rise from 211k to 257k, therefore circumstances do not look favourable for the ‘Loonie’ come the end of the week.
The Euro (EUR), which just yesterday was in a solid state of decline against the Canadian Dollar (EUR/CAD), has today reversed this faring to print a healthy 0.5% rise against the Canadian currency.
Hard Times could be Ahead for CAD Given Unpredictable Oil Price Fluctuations
As the Canadian Dollar’s (CAD) weakness today has mainly been caused by the price of crude oil (which has incidentally hit the lowest point in over 10 years), this trend of the ‘Loonie’ leaping and diving with the price of the commodity seems set to continue for the weeks and months to come.
Due to a mass of oversupply, it is forecast that even the breakdown of diplomacy in the Middle East may not be enough to bump up the commodity’s price to a supportive level for the CAD.
The Euro to Canadian Dollar (EUR/CAD) exchange rate has dropped off today, primarily on account of support for the Euro (EUR) waning after today’s Eurozone Inflation Rate data was published.
EUR/CAD Exchange Rate News: Investors Wary after Today’s Printings, Potential for Restoration in Near Future
The Euro (EUR) has made little positive movement overall today, primarily due to Eurozone data simply not providing enough support to justify a common currency rally. The two main releases have been Germany’s Unemployment figures for December, along with the overall Eurozone Core and Estimated Consumer Price Index for the same month.
The former field has seen a reduction of -14k unemployed persons, but this has failed to shift the actual Unemployment Rate from 6.3%. In the latter, the Core and Estimated Inflation Rate figures respectively reprinted at 0.9% and 0.2%, which added further disappointment due to forecasts of an advance in both instances.
The Euro has fallen by -0.4% against the Australian Dollar (EUR/AUD) today and has made greater losses of -0.7% against the Canadian Dollar (EUR/CAD) and -0.8% against the US Dollar (EUR/USD).
Canadian Prospects Dampened Today by Turbulent Commodity Situation
The Canadian Dollar (CAD) has risen by 0.2% against the Pound Sterling (CAD/GBP), 0.3% against the Australian Dollar (CAD/AUD) and 0.7% against the Euro (CAD/EUR) today, having been bolstered by the recent commodity price rises.
However, it is expected that due to the apparently overwhelming number of negative factors, the price of oil may soon cease to be a supporting aspect for the ‘Loonie’. Although Middle East tensions have ratcheted up the price of crude oil, the strengthening US Dollar (USD) has jeopardised this trend and a series of Chinese economic disappointments could further the downward slide for the price of ‘black gold’.
EUR/CAD Exchange Rate Forecast: Spate of Eurozone PMIs Tomorrow Morning, Higher Impact Results Due Thursday
It appears as though the Euro (EUR) will have the starring role in any EUR/CAD exchange rate movement in the near future, simply by virtue of the Canadian Dollar (CAD) not having any sizable economic publications due until Thursday.
Tomorrow morning will open with the release of a range of Eurozone Composite and Services PMIs for December, which at the time of writing were generally forecast to either rise on previous figures or remain at previous positive levels. Despite these seemingly optimistic predictions, it is worth noting that all of the prior results have failed to move far away from the 50 point line, therefore losses that send a nation into contraction could seriously shake the confidence of investors.
Thursday will also bring an abundance of Eurozone data, mainly of the Retail PMI and Sales variety, but will also see the publication of the next significant Canadian economic releases.
This will first be a speech by Bank of Canada (BOC) Governor Stephen Poloz delivered during the afternoon, which will be followed shortly afterwards by the Ivey Purchasing Managers Index for December.
Current EUR, CAD Exchange Rates
The Euro to Canadian Dollar (EUR/CAD) exchange rate was trending in the region of 1.4977 and the Canadian Dollar to Euro (CAD/EUR) exchange rate was trending in the region of 0.6678 today.