The Euro to Canadian Dollar (EUR/CAD) exchange rate has soared today as the Greek bailout approaches a lasting closure.
Euro Dominates ‘Loonie’ as Incoming US results may Lengthen Common Currency’s Gains
The Euro (EUR) has risen by 1.1% against the Canadian Dollar (CAD) today, and has seen a similarly strong performance against all but the uptrending Swiss Franc (EUR/CHF). This comes ahead of an absolute closing of the Greek bailout package by the European Stability Mechanism tonight. If this follows suit of the European parliamentary votes this week, an approval will be swift and (relatively) clean.
Afterwards, the Euro can be expected to expand its gains against the ‘Loonie’ (CAD) if the US Federal Open Market Committee (FOMC) minutes show hawkish remarks and attitudes from committee members.
Earlier…
The Euro to Canadian Dollar (EUR/CAD) exchange rate has advanced slightly today, as German MPs vote to decide whether they do or do not approve the third Greek bailout deal.
US CPI Rise may Expand EUR/CAD Exchange Rate Advantage
The Euro (EUR) has risen by 0.2% against the Canadian Dollar (EUR/CAD) today, and has the potential to increase these gains later on when the results of Germany’s vote on the Greek bailout proposal come in. These votes are currently ongoing, and an approval or rejection are both likely to trigger a major shift in the common currency’s performance.
Also later today, the US annual CPI results for July are due, and a major rise in this figure is likely to further depreciate the ‘Loonie’ (CAD) against the Euro (CAD/EUR).
Earlier…
The Euro to Canadian Dollar (EUR/CAD) exchange rate has trended narrowly today, although developments elsewhere have the potential to shift the balance in the Euro’s (EUR) favour.
EUR/CAD at Stalemate as Possible German Disruption Holds Euro Back in Pairing
The Euro (EUR) has trended in a narrow range against the Canadian Dollar (EUR/CAD) today and has seen an overall decline elsewhere. The common currency has dropped by -0.2% against the Swiss Franc (EUR/CHF) and the Indian Rupee (EUR/INR) and has dropped by a considerably larger -0.8% against the hawkish Pound Sterling (EUR/GBP).
The Euro’s poor performance today comes from a generalised doubt over whether the current parliamentary votes to approve the third Greek bailout will go through. Although most of the voting parliaments are predicted to approve, Germany remains an uncertain factor; the primary concern is that German MPs will rebel against the supporting attitude offered by German Chancellor Angela Merkel and German Finance Minister Wolfgang Schäuble.
Greece’s next debt repayment deadline is also due this week, and the fact that a bridging loan has been suggested to meet this debt has also been a point of contention among German MPs. The Bundestag is due to begin voting on Wednesday morning, and proceedings are likely to be watched with immense scrutiny from Athens and the Eurozone in general.
Canadian Dollar Dives against the Pound, No Major Movement Elsewhere
The Canadian Dollar (CAD) has moved very little today as with the exception of a -0.8% fall against the Pound Sterling (CAD/GBP), the ‘Loonie’ has trended narrowly in all other pairings. This comes with further woes besetting the Canadian oil industry; crude oil has fallen to below $42 per barrel today. Despite this, the price of gold has continued its overall rise this month, coming in at over $115 per 100 ounces.
The insipid performance of the ‘Loonie’ comes as Canada maintains a steady course in its current recession, which is not expected to worsen in the immediate future. However, a rapid climb out of this state is also not forecast. Canadian Prime Minister Stephen Harper recently stated that ‘The Canadian economy has great prospects going forward’, but just when this translates to definite, visible growth remains to be seen.
Rise Expected in EUR/CAD Pairing if German Vote Passes Smoothly
The Euro (EUR) is expected to gain against the Canadian Dollar (EUR/CAD) this week, as the next Canadian economic releases aren’t out until Friday. A swift, unanimous approval of the Greek bailout package in the European parliaments (while unlikely) would strengthen the single currency considerably, and meeting the August 20th deadline for a €3.5 repayment to the European Central Bank (ECB) would extend such a rise. Any positive US results would also damage the value of the ‘Loonie’, and there are plenty incoming in the next few days.
Current EUR, CAD Exchange Rates
The Euro to Canadian Dollar (EUR/CAD) exchange rate was trending in the region of 1.4494 and the Canadian Dollar to Euro (CAD/EUR) exchange rate was trending in the region of 0.6902 today.