The Euro to Canadian Dollar (EUR/CAD) exchange rate softened by around -0.11% on Thursday morning.
After German economic data failed to meet with median market forecast figures, the shared currency edged lower versus many of its major peers. The declination has been slight, however, after traders felt Wednesday’s declines were overdone with the Geopolitical situation in Greece already priced-in.
The Canadian Dollar, meanwhile, gained versus many of its major rivals despite crude prices hovering around $55 a barrel. The appreciation can be attributed to tracking US Dollar gains.
The Euro to Canadian Dollar (EUR/CAD) exchange rate is currently trending in the region of 1.3119.
Yesterday…
The Euro to Canadian Dollar (EUR/CAD) exchange rate declined by around -0.32% on Wednesday afternoon.
With Eurogroup officials confirming that Greece will not be presenting reforms in Riga on Friday, despite earlier promises, the shared currency softened versus the majority of its most traded currency competitors.
The Canadian Dollar, meanwhile, edged higher versus most of its major peers despite a weaker US Dollar. The appreciation can be linked to crude prices which have held above $56 a barrel for some time now. The ‘Loonie’ (CAD) was also aided by Canadian Finance Minister Joe Oliver who presented the budget and spoke about the positive growth forecast for Canada.
The Euro to Canadian Dollar (EUR/CAD) exchange rate is currently trending in the region of 1.3130.
Euro (EUR) Exchange Rate Softens as Greece Struggles with Reforms
After Athens recalled funds from local governments in order to buy them a few extra months of liquidity, speculation mounted that the Greek government would use this as an opportunity to delay presenting reforms. Eurogroup officials have confirmed that Greece will not be presenting a reform proposal on Friday in Riga, fuelling doubts as to whether they will ever be able to please creditors and hold on to their electoral promises.
‘The intensity of the talks has increased in the past four to five days but not to the extent that they are ripe enough to come to a quick conclusion,’ European Commission President Jean-Claude Juncker told reporters in Vienna on Tuesday. ‘If you want to present some kind of comprehensive agreement to the authorities and the institutions, analyze it, send it to the Euro Working Group to work on it, which then filters out the political questions for the Eurogroup to debate, it will be extremely difficult to keep the deadline of April 30,’ he added.
The Euro to Canadian Dollar (EUR/CAD) exchange rate has fallen to a low of 1.3110 today.
Canadian Dollar (CAD) Exchange Rate Edges Higher on Crude Price Resilience
With oil prices holding above $56 a barrel, the Canadian Dollar strengthened amid speculation that crude will resume appreciation. The ‘Loonie’ advance has been somewhat counteracted by a falling US Dollar, however.
Finance Minister Joe Oliver’s 2015 budget speech provoked upward movement for the Canadian Dollar after he forecast positive Canadian growth. ‘We have withstood the disturbing calm of recession, and the winds of prosperity again fill our sails,’ he told this House. ‘With a united, determined and confident population, Canada marches on unflinchingly towards its bright destiny.’
Euro to Canadian Dollar (EUR/CAD) Exchange Rate Forecast to Hold Losses
Given the extent of the damage to trader confidence amid geopolitics in Europe, the Euro to Canadian Dollar (EUR/CAD) exchange rate is likely to hold losses for the remainder of Wednesday’s European session.
Thursday could be interesting for the EUR/CAD pairing with German and Eurozone Composite, Manufacturing and Services PMIs due for publication. With that being said, however, the situation in Greece is likely to dominate trade.
The Euro to Canadian Dollar (EUR/CAD) exchange rate climbed to a high of 1.3201 today.
