After the solitary Canadian economic data publication printed positively on Friday, the Euro to Canadian Dollar (EUR/CAD) exchange rate dived. Although European data was positive at first glance, the sluggish growth figures caused the common currency to generally soften against the majority of its most traded competitors.
The Euro to Canadian Dollar exchange rate is currently trending in the region of 1.4116.
Slow Growth Hampers Euro (EUR)
At first glance, the German and Eurozone Gross Domestic Product figures appear to have produced positive results, having eclipsed median market forecast figures. However, the figures indicated that growth is particularly slow, and Italy’s figures show their economy to have returned to recession.
The non-seasonally adjusted German Gross Domestic Product saw a preliminary growth of just 1.2% on a yearly basis, advancing beyond the market consensus of 1.0% growth. The seasonally adjusted Eurozone GDP saw a third-quarter advance of 0.8% on a yearly basis, slightly higher than the median market forecast of 0.7% growth.
The Euro to Canadian Dollar exchange rate has dropped to a low today of 1.4099.
Canadian Manufacturing Shipments Boost ‘Loonie’ (CAD)
Friday’s singular Canadian economic data publication has printed positively, allowing the ‘Loonie’ to appreciate against many of its major peers. Manufacturing Shipments was forecast to increase from -3.5% to 1.0%, but the actual result reached 2.1%.
After US retail sales data improved upon forecasts, the US Dollar has recovered from a sustained bearish run. This has bolstered Canadian Dollar gains as it tracks the US Dollar’s upward momentum.
Euro to Canadian Dollar (EUR/CAD) Exchange Rate Forecast to Soften
As traders digest the disappointing European growth figures, and the fact that Italy’s economy has revisited recession, the Euro is likely to continue to depreciate against its major peers. With the US Dollar strengthening on better-than-expected data, the Canadian Dollar is likely to benefit from tracking the upsurge.
The Euro to Canadian Dollar exchange rate has climbed to a high today of 1.4208.
