- EUR CAD rate hits 1.42 – CAD EUR trades at 0.70
- Euro remains steady after ECB’s Draghi’s comments – Major gains despite ECB head’s hesitancy
- Canadian Dollar shattered by BOC dovishness – Canadian interest rate cut on the table for 2017
The Euro has continued its advance against the Canadian Dollar today, climbing in the pairing after Thursday’s Canadian manufacturing figures rose above forecasts.
With major Canadian inflation figures for December out today, the EUR CAD rate may drop, given that Canadian inflation rises are predicted.
(Last updated January 20th, 2017)
The Euro has remained strong against the Canadian Dollar today, after the first press conference of the year by European Central Bank (ECB) President Mario Draghi.
Responding to questions from the assembled press, Draghi offered reassurance that the ECB was working towards improving all of the Eurozone’s financial situation, including Germany, which has previously expressed impatience with the ECB’s long-term game plan.
(Last Updated January 19th, 2017)
The Canadian Dollar has dived, owing to unstable oil prices and the possibility of a national interest rate cut in the future.
Euro Canadian Dollar Exchange Rate Accelerates as Eurozone Furthers Status as Global Lender
The Euro has risen by 0.5% against the Canadian Dollar today, thanks to investors taking heart from the fact that the Eurozone’s November current account surplus has jumped from 32.6bn to 40.5bn.
Showing that the Eurozone is moving even further away from borrowing more than lending, the news has raised confidence in 2017 for the currency bloc considerably.
Elsewhere, the European Central Bank (ECB) has left interest rates on hold at 0%, as forecast.
Heavy Canadian Dollar Losses Seen as BOC’s Poloz Muses Interest Rate Cut
After a lengthy period of leaving the Canadian interest rate at 0.5%, Bank of Canada (BOC) Governor Stephen Poloz has put the cat amongst the pigeons by stating that;
‘We identified a number of downside risks as well as upside risks in our projections. But should any of those downside risks materialize and put our inflation target at risk, then we would have the room to manoeuvre. In that context…a rate cut remains on the table and it would remain on the table as long as those downside risks are still present’.
Poloz made this announcement in the face of potential trade troubles from President Trump, sending the Canadian Dollar Euro exchange rate crashing down -0.5% in the process.
EUR CAD Forecast: Cautious Outlook from ECB’s Draghi could Spell Disaster for Euro Demand
The near-future could see the Euro Canadian Dollar exchange rate gains rapidly eroded; it all depends on what kind of tone ECB President Mario Draghi strikes.
Investors will be focused on how concerned Draghi is about 2017’s Eurozone elections, as well as what kind of changes might be made to the ECB’s bond-buying program; quantitative easing (QE).
The extension of QE was shown to be contested among ECB officials earlier in January, so Draghi could offer some elaboration on the matter and boost the Euro at the same time if he announces a reduction.
For Canada, the afternoon will bring November’s manufacturing sales, which stand to raise CAD demand as they are forecast to rise from -0.8% to 1%.
Current EUR CAD Interbank Exchange Rates
At the time of writing, the Euro Canadian Dollar (EUR CAD) exchange rate was trending in the region of 1.41 and the Canadian Dollar Euro (CAD EUR) exchange rate was trending in the region of 0.70.
