The Euro to Canadian Dollar (EUR/CAD) exchange rate softened by around -0.25% on Thursday morning.
Although German labour market data bettered estimates, the shared currency ticked lower versus many of its major peers. This can be attributed to ongoing concern that Greece’s appeal for a loan extension, and their programme of debt repayment, will be rejected by one or more key European governments.
The Canadian Dollar, meanwhile, strengthened versus most of its major rivals after a recent surge in oil saw prices rise above $50 a barrel. Although crude prices resumed declination on Thursday morning amid oversupply from the US, the ‘Loonie’ (CAD) held gains.
The Euro to Canadian Dollar (EUR/CAD) exchange rate is currently trending in the region of 1.4092.
Euro (EUR) Exchange Rate Stumbles on Grexit Potential
After strengthening following the European Commission’s acceptance of Greece’s bailout extension and programme for debt repayment, the shared currency has since lost those gains amid heightened speculation that the German government will not be as accepting as the Eurogroup.
However, the single currency declination was slowed somewhat thanks to positive data out of the currency-bloc’s most powerful economy. German Unemployment Rate came in at 6.5% in February, with Employment Change bettering estimates of 10,000 fewer unemployed, with the actual result seeing a drop of 20,000.
The Euro to Canadian Dollar (EUR/CAD) exchange rate has fallen to a low of 1.4070 today.
Canadian Dollar (CAD) Exchange Rate Strengthens despite Oil Decline
After Bank of Canada (BOC) Governor Stephen Poloz said that further rate cuts were unlikely, the Canadian Dollar strengthened against many of its counterparts. Wednesday saw further gains thanks to rising oil prices.
Although oil prices have resumed declination on Thursday, the fact that the commodity remains above $50 a barrel has seen continued support for the ‘Loonie’. ‘The previous gains reflected the fact that the market is looking forward to more production cuts coming with declines in rig counts,’ said Ric Spooner, chief analyst at CMC Markets in Sydney. ‘But it is a conflict play between production and demand. Certainly, production is exceeding demand, at least in the US.’
Euro to Canadian Dollar (EUR/CAD) Exchange Rate Forecast to Fluctuate
Given that Canadian inflation data, due for publication later on Thursday afternoon, is forecast to decline; there is a heightened possibility for the Euro to Canadian Dollar (EUR/CAD) exchange rate to fluctuate.
Friday will also see Euro volatility with German inflation data due for publication.
The Euro to Canadian Dollar (EUR/CAD) exchange rate climbed to a high of 1.4147 today.