The Euro fluctuated as investors braced themselves for the release of inflation figures for the Eurozone and the Canadian Dollar was able to strengthen against its European cousin.
During the local session the Euro slipped against several of its currency counterparts in spite of upbeat trade data for the Eurozone and some mixed economic sentiment figures for Germany, its most influential member.
At the same time the Canadian Dollar was supported by the news that domestic factory orders surged earlier this year, achieving their strongest level in February since Canada’s 2008 recession.
Statistics Canada figures showed that sales advanced by 1.4 per cent in February rather than the 1 per cent expected.
January’s month-on-month figure was negatively revised to a gain of 0.8 per cent.
The increase was largely the result of gains in energy and transport.
New orders increased by the most for more than 20 years.
Meanwhile, separate data showed that existing home sales in Canada increased by 1.0 per cent in March, month-on-month, with sales up by 4.9 per cent on the year.
Sales rose by 0.3 per cent the previous month.
However, while the Canadian Dollar fluctuated modestly against the Euro it struggled to make any headway against the ‘Greenback’.
The US Dollar was enjoying a bullish relationship with several of its main currency counterparts thanks to yesterday’s unexpectedly strong US retail sales report and today’s positive consumer price data.
The Pound also ticked higher against the ‘Loonie’.
Tomorrow’s Bank of Canada rate decision may well spark considerable Canadian Dollar movement, but Eurozone inflation figures could have more of an impact on driving EUR/CAD fluctuations – particularly if they deliver a surprising result.
Economists expect the report to confirm that consumer prices in the currency bloc advanced by 1.0 per cent in March, month-on-month.
If prices are shown to have slowed by more than anticipated – putting even more pressure on the ECB to introduce additional stimulus – Euro losses are likely.
Euro (EUR) Exchange Rates
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Euro,
Euro,
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