The Euro to Canadian Dollar (EUR/CAD) exchange rate edged higher by around 0.11% on Thursday morning.
After a long-period of significant declination, the Euro recovered some of it losses amid fears of overselling. However, ongoing tensions between Greece and Germany are likely to see the common currency resume declination in the long-term.
The Canadian Dollar, meanwhile, edged higher versus some of its major rivals as a result of crude prices rising. With oil still below $50 a barrel, however, the ‘Loonie’ (CAD) gains have been fractional and are unlikely to hold.
The Euro to Canadian Dollar (EUR/CAD) exchange rate is currently trending in the region of 1.3447.
Yesterday…
The Euro to Canadian Dollar (EUR/CAD) exchange rate dived by around -1.09% on Wednesday morning.
With tensions in Greece close to breaking point, and the potential for a Grexit mounting with every passing day, the common currency slumped versus all of its most traded currency competitors. With financial aid on hold, the Greek government has been forced to tap into the emergency funds provided to bailout Eurozone banks in the event of a crisis. e
The Canadian Dollar, meanwhile, strengthened versus many of its most traded currency competitors after oil prices rose. Crude is still trading below $50 a barrel, however, which has seen ‘Loonie’ (CAD) gains slowed somewhat.
The Euro to Canadian Dollar (EUR/CAD) exchange rate is currently trending in the region of 1.3420.
Euro (EUR) Exchange Rate Tanks as Greek Situation Deteriorates
The shared currency slumped across the board on Wednesday despite the fact that Greece allowed the ‘troika’ of financial creditors back into Athens. This was due to renewed tensions between Greece and Germany after Prime Minister Alex Tsipras demanded compensation for the Nazi occupation in World War Two.
‘We are not giving lessons in morality, but we will not accept lessons in morality either,’ Tsipras said during a debate on reviving a special parliamentary committee on demanding German war reparations. ‘We are prepared to offer every political and legal assistance to ensure that this committee’s efforts bear fruit,’ he said.
The Euro to Canadian Dollar (EUR/CAD) exchange rate dropped to a low of 1.3400 today.
Canadian Dollar (CAD) Exchange Rate Strengthens on Crude Prices
Oil prices rose on Wednesday after Russia’s energy minister, Alexander Novak, said that oil exports are expected to rise in 2015. Additionally, Novak stated that they intend on cutting refinery output. ‘The strategy is to cut refining throughput,’ Novak said. ‘That’s due to an increase in light products output on the back of modernisation.’
In addition to rising crude prices supporting demand for the ‘Loonie’, the Canadian asset also advanced as a result of tracking the US Dollar surge.
Euro to Canadian Dollar (EUR/CAD) Exchange Rate Forecast to Hold Losses
Given the lack of domestic data to curb the trend, and with tension in Greece on a knife-edge, the Euro to Canadian Dollar (EUR/CAD) exchange rate is likely to hold losses for the remainder of Wednesday.
Thursday could see heightened EUR/CAD volatility with Canadian housing data due for publication. European data is unlikely to have a significant impact, however, with geopolitics dominating trader focus.
The Euro to Canadian Dollar (EUR/CAD) exchange rate reached a high of 1.3581.
