The Euro to Canadian Dollar (EUR/CAD) exchange rate was trending within a limited range on Friday morning.
Sentiment towards the shared currency improved significantly on Friday following a marked surge on Thursday. The appreciation is as a result of Athens agreeing to continue with the bailout program despite the ongoing disagreements with Germany.
The Canadian Dollar, meanwhile, edged higher versus many of its most traded currency competitors ahead of significant labour market data due for publication later on Friday afternoon. The ‘Loonie’ (CAD) is holding steady as oil prices climb gradually.
The Euro to Canadian Dollar (EUR/CAD) exchange rate is currently trending in the region of 1.3491.
Yesterday…
The Euro to Canadian Dollar (EUR/CAD) exchange rate advanced by around 0.21% on Thursday afternoon.
The common currency recovered some of its losses on Thursday amid speculation the recent declination was overdone. With issues in Greece still at the forefront of trader focus, however, many experts predict that the single currency will resume its downtrend.
The Canadian Dollar, meanwhile, softened versus many of its major peers despite industry capacity reaching its highest level since 2006. The decline has been aided by oil prices falling and domestic data disappointing.
The Euro to Canadian Dollar (EUR/CAD) exchange rate is currently trending in the region of 1.3472.
Euro (EUR) Exchange Rate Strengthens on Overselling
With the potential for a Grexit coinciding with the launch of quantitative easing in the Eurozone, the shared currency depreciated significantly. On Thursday, however, the Euro recovered some of its losses as traders feared that the declination was overdone.
The tensions in Greece are far from abating, however, and so many experts forecast the Euro to resume falling in the long-term. Athens has now made a deal with the OCED on economic reforms, but the government has criticised the troika as blackmailers.
‘The reforms we are discussing with the OECD are not reforms that have been imposed upon us. No. They are reforms we would like to introduce. This is not the right time to criticise the failed programme has followed over the past four years,’ stated Prime Minster Tsipras.
‘But on the side of the troika, what we saw was something like blackmail. If you don’t cut pensions, if you don’t fire people, we will not give you this bit of funding,’ he added.
The Euro to Canadian Dollar (EUR/CAD) exchange rate has fallen to a low of 1.3392 today.
Canadian Dollar (CAD) Exchange Rate Softens on Disappointing Data
Canadian economic data produced mostly disappointing results on Thursday, causing the ‘Loonie’ (CAD) to slide versus many of its major peers. Perhaps the most significant data publication, in terms of its detrimental effect on the ‘Loonie’, was January’s New Housing Price Index, which grew by 1.4% on the year, below the median market forecast of 1.6%.
‘The abrupt shift in housing demand and supply conditions in some parts of the country indicate that potentially severe housing corrections have already begun. In Calgary, for example, the slump in existing home sales and jump in new properties listed for sale suggest that house prices will decline by 15% this year,’ said David Madani, economist with Capital Economics.
Euro to Canadian Dollar (EUR/CAD) Exchange Rate Forecast to Hold Gains
Although there are several factors piling downward pressure on the shared currency, low oil prices ought to keep the ‘Loonie’ in a weak position. Therefore, the Euro to Canadian Dollar (EUR/CAD) exchange rate is likely to hold gains for the remainder of Thursday’s trade.
Friday will see heightened EUR/CAD volatility with influential Canadian labour market data due for publication.
The Euro to Canadian Dollar (EUR/CAD) exchange rate has reached a high of 1.3503 today.
