The Euro to Canadian Dollar (EUR/CAD) exchange rate was trending within a limited range on Friday morning.
With European bonds already impacted by quantitative easing, and tensions regarding the potential for a Greek exit from the Eurozone easing, the shared currency strengthened versus the majority of its most traded currency rivals. Positive results from German data also aided the single currency appreciation.
The Canadian Dollar, meanwhile, is generally holding steady as traders await labour market data due for publication later on Friday afternoon. With crude prices continuing to decline, and the domestic data forecast to print negatively, the ‘Loonie’ (CAD) gains are likely to be short-lived.
The Euro to Canadian Dollar (EUR/CAD) exchange rate is currently trending in the region of 1.3490.
Euro (EUR) Exchange Rate Strengthens as Grexit Speculation Eases
Tensions between Greece and Germany have become significantly heated, with little sign that arguments will abate anytime soon. However, Greece’s Prime Minister Alexis Tsipras reassured creditors that the spat would not impact upon Athens’ promise to continue with the bailout program. This saw heightened demand for the single currency after a long period of declination.
‘I personally don’t feel I am on a leash,’ Tsipras told reporters at a joint news conference with OECD Secretary General Angel Gurria. ‘I feel that maybe for the first time, Greece has the resolute determination to go ahead with reforms, with cooperation from the institutions,’ he said.
German economic data printed positively on Friday which fuelled the Euro appreciation. February’s Wholesale Price Index declined by -2.1% on the year, a slight advance from the previous declination of -2.6%.
The Euro to Canadian Dollar (EUR/CAD) exchange rate has fallen to a low of 1.3441 today.
Canadian Dollar (CAD) Exchange Rate Holds Steady ahead of Labour Data
The ‘Loonie’ is holding relatively steady on Friday ahead of significant labour market data. However, both Net Change in Employment and Unemployment Rate are forecast to produce disappointing results.
Oil prices cooled on Friday which is likely to have a negative impact on the Canadian Dollar. ‘Behind the facade of stability, the rebalancing triggered by the price collapse has yet to run its course, and it might be overly optimistic to expect it to proceed smoothly,’ said the Paris-based IEA, which advises energy consuming nations.
‘US supply so far shows precious little sign of slowing down. Quite to the contrary, it continues to defy expectations,’ said the IEA in its monthly Oil Market Report.
Euro to Canadian Dollar (EUR/CAD) Exchange Rate Forecast to Strengthen
Given that oil prices are showing no signs of recovery, and with Canadian labour market data forecast to produce disappointing results, the Euro to Canadian Dollar (EUR/CAD) is likely to trend higher on Friday.
The Euro to Canadian Dollar (EUR/CAD) exchange rate advanced to a high of 1.3521 today.