The Euro to Canadian Dollar (EUR/CAD) exchange rate was trending within a tight range on Tuesday morning.
With heightened speculation that Greece will exit the Eurozone, the shared currency is generally trending lower versus the majority of its most trade currency rivals. The Canadian Dollar, meanwhile, is also soft versus many of its major peers as a result of oil prices resuming declination.
The Euro to Canadian Dollar (EUR/CAD) exchange rate is currently trending in the region of 1.4115.
Yesterday…
The Euro to Canadian Dollar (EUR/CAD) exchange rate was trending within a narrow range on Monday morning.
After European data printed positively, the single currency advanced versus the majority of its most traded currency rivals. The data isn’t as impactful as it would have ordinarily been in light of mounting speculation that Greece will leave the Eurozone.
The Canadian Dollar, meanwhile, found support despite dipping oil prices as traders focus on bullish employment news. The gains have been sluggish, however, as traders await the publication of domestic housing starts data later this afternoon.
The Euro to Canadian Dollar (EUR/CAD) exchange rate is currently trending in the region of 1.4175.
Euro (EUR) Exchange Rate Gains on Investor Confidence
Despite issues with Greece having a strong impact on the single currency of late, the Euro strengthened versus the majority of its most traded currency rivals thanks to positive data results from the Eurozone. German Trade Balance bettered estimates of a slide from 17.9 billion to 16.0 billion, with the actual result climbing to 21.8 billion.
Eurozone Investor Confidence data produced a surprising result having advanced from 0.9 to 12.4, eclipsing the median market forecast of 3.0. ‘The main driver of confidence was probably the firm announcement about ‘quantitative easing’ by the ECB,’ said Sentix in a statement. ‘It is a sign that the economic momentum in the Eurozone is really improving,’ the statement added.
The Euro to Canadian Dollar (EUR/CAD) exchange rate has fallen to a low of 1.4151 today.
Canadian Dollar (CAD) Exchange Rate Edges Higher despite Oil Price Dip
China’s trade performance was found wanting in January, causing oil prices to dip. Prices have remained above 50 Dollars a barrel, however, which has caused traders to focus on the positives. ‘It’s still the same pattern (as last week),’ said Carsten Fritsch, a senior oil and commodities analyst. ‘Markets are ignoring the bearish news and rather trade on the bullish news.’
Euro to Canadian Dollar (EUR/CAD) Exchange Rate Forecast to Soften
Given that issues with Greece aren’t showing signs of resolution, and with Canadian housing starts data forecast to hold close to the previous figure, the Euro to Canadian Dollar (EUR/CAD) exchange rate is likely to soften.
A complete absence of data pertaining to both Europe and Canada on Tuesday should see the EUR/CAD pairing avoid intense volatility. With that being said, however, there is always the potential for Euro fluctuations with geopolitical tensions on a knife edge.
The Euro to Canadian Dollar (EUR/CAD) exchange rate climbed to a high today of 1.4210.
