In the aftermath of yet more disappointing data from the Eurozone, the Euro to Canadian Dollar (EUR/CAD) exchange rate softened considerably. Mixed Canadian economic data has had minimal impact on the ‘Loonie’ (CAD), but a general appreciation can be attributed to improved confidence in the crude oil market.
The Euro to Canadian Dollar exchange rate is currently trending in the region of 1.4102.
Euro (EUR) Declines on Eurozone Industrial Production
On Wednesday, the common currency softened against the majority of its most traded currency competitors after Eurozone industrial production failed to meet with forecast growth. On a yearly basis, Eurozone Industrial Production managed to increase above expectations having risen from -0.5% to 0.6%. However, September’s Industrial Production only managed growth of 0.6% despite the median market forecast of a 0.7% increase.
The Euro to Canadian Dollar exchange rate has dropped to a low today of 1.4089.
Canadian Dollar (CAD) Unmoved by Domestic Data
Mixed results from Canadian economic data on Wednesday have had minimal impact on ‘Loonie’ movement. The Teranet/National Bank HP Index increased by 0.2% in October from 167.64 to 167.99. On a yearly basis, the Teranet/National Bank HPI equalled the previous figure of 5.4%.
Improved Confidence in Oil Market Spurs ‘Loonie’ (CAD) Uptrend
OPEC stated that Saudi Arabia led declines in the group’s oil output last month, allowing for a better supply/demand ratio. In addition, increased demand for oil is likely to see a recovery from the sustained bear market period.
‘The improvement in manufacturing activities is positively impacting oil consumption,’ OPEC’s Vienna-based research department said in its monthly oil market report. ‘With economic indicators pointing to a continued recovery in the global economy, any additional improvement in the economies of major oil consuming countries should help the demand trend to pick up further.’
Euro to Canadian Dollar (EUR/CAD) Exchange Rate Forecast to Soften
With mounting anxieties regarding European Central Bank stimulus initiatives and improvement in the crude oil market, the EUR/CAD exchange rate is likely to soften.
The Euro to Canadian Dollar exchange rate has advanced to a high today of 1.4166.