The Euro to Canadian Dollar exchange rate fell on Tuesday after data showed that factory sales in the North American nation rose at the fastest pace in close to a year and as the single currency was softened by disappointing German investor sentiment data.
According to Statistics Canada, factory sales increased by 1.5% to C$50.4 billion, the quickest pace recorded since February last year and meant that sales had fully recovered from the decline recorded at the end of 2013. Economists were expecting sales to rise by 0.6%.
Statistics Canada also revised December’s drop to 1.5% from an initially reported 0.9 percent, and said that January’s inventories climbed by 3.6%, the most since at least 1992.
The ‘Loonie’ also found support from improved market sentiment as a result of a speech by Russian President Vladimir Putin.
Putin said that Russia isn’t seeking “a partition of Ukraine”, signalling that Russia’s moves in Ukraine would be limited. The speech came one day after the Russian president recognized the results of Sunday’s referendum in Crimea, which saw a majority of voters, chose to split from Ukraine.
The Euro meanwhile remains under pressure from the mornings disappointing ZEW investor sentiment data. Sentiment in the region’s largest economy fell to 46.6 in March and was weaker than the 55.7 reading recorded in February. Analysts had been expecting a figure of 53.
The report indicated that the economic upswing in Germany is not at risk. The assessment of current economic conditions improved to 51.3 this month from 50.0 in February.
Tomorrow sees the release of the latest Eurozone construction data.
Euro (EUR) Exchange Rates
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