The Euro to Canadian Dollar (EUR/CAD) exchange rate strengthened by around 0.18% on Tuesday afternoon.
After US oil worker strikes caused a refinery to desist operations, the commodity-correlated Canadian Dollar strengthened versus the majority of its most traded currency rivals. Improving market sentiment aided the ‘Loonie’ (CAD) uptrend.
The Euro, meanwhile, also advanced against many of its major peers as a result of Grexit anxieties easing. After the European Central Bank (ECB) voiced a desire to disband the financial lending ‘troika’, speculation that Greece and the ECB will be able to come to a mutually beneficial deal with regards to debt repayment allowed the common currency to advance.
The Euro to Canadian Dollar (EUR/CAD) exchange rate is currently trending in the region of 1.4287.
Euro (EUR) Exchange Rate Gains as Grexit Tensions Ease
As explained above, the disbanding of the troika of financial lenders will be beneficial for Greece. ‘In the future, we should be able to replace the ‘troika’ with a more democratically legitimate and more accountable structure, based around European institutions with enhanced parliamentary control both at European and at national level,’ Commission President Jean-Claude Juncker said in his mission statement last year.
‘Greece’s current programme of loans ends on 28 February. There is no agreement yet on disbursement of the final bailout tranche of €7.2bn – and Greek Finance Minister Yanis Varoufakis has said Athens does not want it,’ stated a BBC news article.
The Euro to Canadian Dollar (EUR/CAD) exchange rate dropped to a low of 1.4207.
Canadian Dollar (CAD) Exchange Rate Strengthens on Oil Prices
After US oil workers went on strike, which resulted in a refinery ceasing operations, oil prices strengthened. This supported the oil-sensitive Canadian Dollar and improved trader risk sentiment.
‘Most market observers have been surprised by the scale of the decrease, and expectations of US oil output this year will no doubt be lowered accordingly,’ analysts at Commerzbank said in a research note. ‘The foundation for a steady price recovery in the second half of the year has thus been laid.’
Euro to Canadian Dollar (EUR/CAD) Exchange Rate Forecast to Fluctuate
With oil prices notoriously volatile at present, the potential for a rebound is bubbling under the surface. Therefore, the Euro to Canadian Dollar (EUR/CAD) exchange rate has the potential to fluctuate on Tuesday.
This is especially true given that there is Canadian data due for publication later on Tuesday afternoon which has the potential to initiate changes. Additionally, if US data prints poorly and causes the ‘Buck’ (USD) to soften, the ‘Loonie’ could either track those losses or take advantage of the US Dollar’s decline.
Wednesday is likely to see EUR/CAD volatility with several influential data publications due for release. For those invested in the Euro, Eurozone retail Sales will be of most significance. For those invested in the Canadian Dollar, the Ivey Purchasing Managers Index will be of interest.
The Euro to Canadian Dollar (EUR/CAD) exchange rate reached a high today of 1.4326.