The Euro has made a moderate rise against the Canadian Dollar today, thanks to higher-than-expected scores for German economic confidence.
- EUR CAD rate climbs to 1.4583 – CAD EUR rate slips to 0.6854
- Euro supported by IFO scores – Record high seen for business sentiment
- Canadian Dollar slides on inactivity – IMF predicts 2.5% CA growth
- Further Euro gains possible on Wednesday’s confidence stats – Canadian Dollar may advance if US Dollar declines
The EUR CAD advance to a rate of 1.4586 still leaves the Euro down, when compared to July’s best exchange rate of 1.4822.
Euro Pushed Up by Strong German Confidence Scores
Today’s primary source of Euro support has been a trio of IFO measures of German confidence.
In July, scores for the business climate, current conditions and future expectations have all risen above forecast, greatly raising Euro trader optimism.
The business climate result was especially supportive, as the rise to 116 points was the highest level in over 10 years.
Elsewhere, European Commissioner Pierre Moscovici has spoken about the Greek economy. Moscovici has been largely positive about the situation, stating that;
‘Confidence in Greece is really coming back, but we need to continue the good work. We need to be on the bicycle, and keep on pedalling. That’s the case for Europe as a whole. If you don’t go that way, then the bicycle falls’.
This statement came as the Greek government commenced a sale of five-year bonds.
Canadian Dollar Dips as Traders Hold Off ahead of US Data
Simple inactivity has dragged the Canadian Dollar down today, with recent positive news failing to have much of an impact. On this front, CA wholesale sales rose by 0.9% on Monday and crude oil prices have recently ticked up as well.
Additionally, the International Monetary Fund (IMF) has upgraded its 2017 CA growth forecast to 2.5% from 1.9%.
EUR CAD Forecast: Further Euro Gains possible on Italian Confidence Stats
Looking ahead to Wednesday’s Eurozone data, the Euro could appreciate further against the Canadian Dollar when French and Italian confidence figures come out.
Covering July, the results are forecast to show no change in French consumer confidence and slight declines in Italian business and consumer confidence scores.
Despite such predictions, surprise postings of growth could push the EUR CAD exchange rate up.
This week will be a quiet one for Canadian data, which leaves US news as the more influential factor.
A US measure of consumer confidence is out today, which could devalue the US Dollar if it prints poorly. The CB consumer confidence measure is projected to drop from 118.9 points to 116.6, so the US Dollar may well decline.
Such an outcome could trigger a brief Canadian Dollar rally as a consequence.
Current Interbank EUR CAD Exchange Rates
At the time of writing, the Euro to Canadian Dollar (EUR CAD) exchange rate was trading at 1.4583 and the Canadian Dollar to Euro (CAD EUR) exchange rate was trading at 0.6854.