The Euro to Canadian Dollar (EUR/CAD) exchange rate strengthened by around 0.31% on Friday morning.
With German retail sales failing to meet with expectations, the common currency slumped versus the majority of its most traded rivals. However, as the US Dollar softens and with oil prices still under $50 a barrel, the Canadian Dollar declined against the shared currency. The ‘loonie’ (CAD) is unlikely to advance ahead of labour data due for publication on Friday afternoon.
The Euro to Canadian Dollar (EUR/CAD) exchange rate is currently trending in the region of 1.3986.
This is as a result of a particularly disappointing set of data publications from Germany and the Eurozone. Euro losses are also due to heightened speculation that the European Central Bank will be forced to stimulate economic recovery in the form of an aggressive bond-buying scheme. The ‘Loonie’ (CAD), meanwhile, strengthened against many of its currency rivals after domestic data printed positively and oil prices show signs of rebounding.
The Euro to Canadian Dollar (EUR/CAD) exchange rate is currently trending in the region of 1.3944.
Euro (EUR) Exchange Rate Trending Lower on Domestic Data
After European economic data produced negative results, the single currency dived versus the majority of its most traded currency rivals. Yearly German Factory Orders declined by -0.4% in November, having softened by -2.4% on a monthly basis. Eurozone Retail Sales managed to avoid the median market forecast of only a 0.2% rise, with the actual data increasing by 1.5%. Eurozone Industrial Confidence and Eurozone Economic Confidence failed to meet with forecast growth.
The recent disappointing data is adding fuel to a fire of speculation that the ECB will have no choice but to intervene with expansive measures in order to avoid a fresh financial crisis, especially since the recent emergence of deflation.
‘The emergence of negative inflation does forcefully raise the spectre of a possible prolonged period of deflation,’ said James Ashley, chief European economist at RBC Capital Markets. ‘For those policymakers who, hitherto, might have been undecided over whether or not to take further action immediately, this may be just the clarion call that was required to appreciate the gravity of the situation.’
The Euro to Canadian Dollar (EUR/CAD) exchange rate has fallen to a low today of 1.3877.
Canadian Dollar (CAD) Exchange Rate Climbs on Oil
After oil prices showed signs of recovery following a fall below $50 a barrel, the Canadian Dollar appreciated against many of its major peers. The bullish US Dollar has also aided the ‘loonie’ upsurge as it tracks the ‘Greenback’ (USD) gains.
Thursday’s Canadian data printed positively which has also aided the Canadian Dollar uptick. New Houseing Price Index increased from 1.6% to 1.7% on a yearly basis thanks to a 0.1% increase in November.
Euro to Canadian Dollar (EUR/CAD) Exchange Rate Forecast to Trend Lower
Given the compounding negative sentiment towards the Euro, and the lack of data to curb the trend, the Euro to Canadian Dollar (EUR/CAD) exchange rate is likely to continue trending lower on Thursday.
The Euro to Canadian Dollar (EUR/CAD) exchange rate climbed to a high today of 1.3995.