Homepage » News » EUR/CAD » Euro to Canadian Dollar (EUR/CAD) Exchange Rate Rallies to Monthly-High on German CPI

Euro to Canadian Dollar (EUR/CAD) Exchange Rate Rallies to Monthly-High on German CPI

With attitudes towards the single currency deteriorating following faltering German economic sentiment, the Euro has recovered on Wednesday as German inflation data printed in line with forecasts. Meanwhile, the Canadian Dollar has depreciated in response to falling oil prices, mixed economic data and a softened US Dollar.

The Euro to Canadian Dollar exchange rate is currently trending in the region of 1.4448.

Tuesday saw a rather severe Euro decline after German data printed negatively. The ZEW German Economic Sentiment Survey was forecast to drop from 6.9 to 0.0, but the actual result fell further to -3.6.

ZEW President Professor Clemens Fuest stated; ‘ZEW’s financial market experts expect the economic situation in Germany to decline further over the medium term. Geopolitical tensions and the weak economic development in some parts of the Eurozone, which is falling short of previous expectations, are a source of persistent uncertainty’.

A lack of Canadian data has seen the ‘Loonie’ (CAD) generally soften amid cautious trading. As concerns over the Ebola virus and the cool rate of global economic growth weigh on trader focus, the Canadian Dollar’s lack of safe-haven qualities aids the downtrend.

Further declination can be attributed to cuts in global oil prices. Grant Smith, writing for Bloomberg, stated; ‘Brent crude extended its biggest one-day collapse in three years amid speculation OPEC will refrain from eliminating a glut while demand growth slows to the lowest since 2009’.

The Euro to Canadian Dollar exchange rate has fallen to a low today of 1.4022.

On Wednesday the Euro rebounded from its slump after German data met with forecasts for the first time in a good while. The EU-Harmonised German Consumer Price Index equalled the initial estimates for September, with the final figure hitting 0.8%.

Canadian domestic data has been relatively mixed on Wednesday, although not erring towards the positive enough to overshadow risk aversion and commodity price cuts.

Existing Home Sales declined by -1.4% on the month after gaining by 1.8% in August. The Teranet/National Bank HPI appreciated on a yearly basis from 4.0% to 5.4%, but depreciated on a monthly basis from 0.8% to 0.4% in September.

Forecast for the Euro to Canadian Dollar Exchange Rate

A speech by the European Central Bank President Mario Draghi later on Wednesday evening has the potential to provoke changes for the single currency. Wednesday’s Eurozone CPI data will also have an effect on the Euro if the initial estimates are revised.

Thursday’s Canadian data is of little consequence in terms of the provocation of ‘Loonie’ movement. International Securities and Manufacturing Shipments are unlikely to overshadow cooling crude value or trader risk aversion.

The Euro to Canadian Dollar exchange rate has reached a high today of 1.4448.