The Euro firmed against the Canadian Dollar despite the release of positive data releases out of the North American nation.
Data showed that Canada’s raw materials production index increased by 2.6% in January, smashing forecasts for a rise of 1%.
The ‘Loonie’ also found some support from news that commodities advanced to their highest level in almost six months as tensions over Ukraine increased fears that global food and energy supplies could be disrupted. The value of Canada’s biggest export of Crude Oil jumped.
The currency was unable to take advantage of the increased commodity prices however as investors favoured safe haven currencies such as the US Dollar, Japanese Yen and Swiss Franc.
Market sentiment was under pressure due to the unfolding crisis in the Ukraine which has sparked a broad based selloff in riskier assets, the concerns rose following Russian President Vladimir Putin’s decision to send troops into the Crimea region over the weekend.
The Euro was aided by mixed data out of the Eurozone. The region’s manufacturing index fell to 53.2 last month, down from the 54 reading recorded in January. The drop was the first recorded in five months. In contrast it found some support from news that the rate of decline in France’s manufacturing sector eased and Germany’s advanced for an eighth consecutive month.
The Euro’s losses were restrained by the euro zone inflation data released late last week which eased pressure on the European Central Bank to tighten monetary policy at its upcoming meeting on Thursday.
Euro (EUR) Exchange Rates
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Currency, ,Currency,Rate ,
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Euro,
Euro,
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