The Euro to Canadian Dollar (EUR/CAD) exchange rate is trending within a narrow range on Wednesday morning.
After the EU commission deemed Greece’s programme for debt repayment as acceptable, the shared currency strengthened versus many of its major peers. However, there is still uncertainty surrounding Greece’s future in the Eurozone with Germany yet to give their seal of approval and with the International Monetary Fund outlining their concerns.
The Canadian Dollar, meanwhile, recovered some of its losses from low oil prices thanks to a speech by Bank of Canada Governor Stephen Poloz. Poloz stated that the recent rate cut had given them time to gauge the affect of low oil prices on inflation. With oil prices continuing to cool, however, the ‘Loonie’ (CAD) gains have been somewhat laboured.
The Euro to Canadian Dollar (EUR/CAD) exchange rate is currently trending in the region of 1.4152.
Yesterday…
The Euro to Canadian Dollar (EUR/CAD) exchange rate was trending within a tight range on Tuesday afternoon.
After the EU commission accepted Greece’s programme of debt repayment, the shared currency strengthened versus many of its major peers. The advance has been slow, however, with opinions divided as to the viability of the proposal. With German government approval yet to be established, there is the potential for the Eurogroup decision to be overturned.
The Canadian Dollar, meanwhile, edged higher versus some of its most traded currency rivals after crude prices increased a little. The ‘Loonie’ (CAD) gains have been laboured, however, with oil prices still hovering below $50 a barrel.
The Euro to Canadian Dollar (EUR/CAD) exchange rate is currently trending in the region of 1.4259.
Euro (EUR) Exchange Rate Edges Higher as Grexit Fears Ease
In the immediate aftermath of the approval of Greece’s programme of debt repayment, the shared currency advanced. However, those gains were short-lived after it emerged that the International Monetary Fund and European Central Bank (ECB) President Mario Draghi didn’t share the Eurogroup’s opinion. Objection from such prominent officials may be excuse enough for Germany to reject the proposal.
The IMF’s Christine Lagarde said; ‘Whilst the authorities list is comprehensive, it is not very specific, which is perhaps to be expected considered the government is new in office. We note in particular that there are neither clear commitments to design and implement the envisaged comprehensive pension and VAT policy reforms nor unequivocal undertakings to continue already-agreed policies for opening up closed sectors, for administrative reforms, for privatisation, and for labour market reforms.’
The Euro to Canadian Dollar (EUR/CAD) exchange rate has fallen to a low today of 1.4236.
Canadian Dollar (CAD) Exchange Rate Ticks Higher on Oil Prices
After having declined for the past few days, oil prices rebounded after Libya shut its largest oil field. As a currency sensitive to fluctuations in oil, the Canadian Dollar strengthened as a result. Despite the fractional crude appreciation, most experts see further declination to come.
‘The fundamental backdrop is still bearish,’ said Carsten Fritsch, senior oil and commodities analyst at Commerzbank in Frankfurt, adding there was a ‘huge over-supply in the market’.
The Bank of Canada (BOC) Governor Poloz will be giving a speech later on Tuesday. Many analysts feel he will talk down the ‘Loonie’ with inflationary pressures from low oil prices.
Euro to Canadian Dollar (EUR/CAD) Exchange Rate Forecast to Fluctuate
With Poloz due to speak, and with oil prices subject to volatility, the Euro to Canadian Dollar (EUR/CAD) exchange rate is likely to fluctuate over the remainder of Tuesday’s trade. There is, however, potential for a Canadian Dollar advance if the US Dollar extends gains.
The Euro to Canadian Dollar (EUR/CAD) exchange rate climbed to a high of 1.4331.
