The Euro to Canadian Dollar (EUR/CAD) exchange rate softened by around -0.24% on Thursday morning.
Although German labour market data printed positively on Thursday morning, the shared currency softened versus most of its major peers. This can be attributed to rising doubt in Germany as to the viability of Greece’s debt repayment programme.
The Canadian Dollar, meanwhile, edged higher versus some of its peers after oil prices rose. However, the gains could be short-lived with oil prices resuming declination. Canadian inflation data, due later on Thursday afternoon, will be of significance to those invested in the Canadian Dollar.
The Euro to Canadian Dollar (EUR/CAD) exchange rate is currently trending in the region of 1.4091.
Yesterday…
The Euro to Canadian Dollar (EUR/CAD) exchange rate softened by around -0.33% on Wednesday afternoon.
The shared currency softened versus nearly all of its major peers on Wednesday after the European Central Bank (ECB) miscalculated the availability of the bonds needed to fund quantitative easing. Additional losses are as a result of anxieties regarding the possibility that Germany won’t accept Greece’s programme for debt repayment.
The Canadian Dollar, meanwhile, strengthened versus most of its major competitors as a result of oil prices rising. However, with oil prices resuming declination, there is heightened potential for the ‘Loonie’ (CAD) to soften.
The Euro to Canadian Dollar (EUR/CAD) exchange rate is currently trending in the region of 1.4113.
Euro (EUR) Exchange Rate Softens as ECB Fails to Source Bonds for QE
Although the single currency strengthened after the Eurogroup approved Greece’s programme for debt repayment, anxieties that the German government would be less accommodative initiated a Euro downtrend.
Compounding the depreciation was news that the ECB is struggling to source bonds to fund quantitative easing. ‘There’s a lack of bonds to meet current demand globally, so it’s going to be difficult to see a lot of sellers,’ said Patrick O’Donnell, portfolio manager at Aberdeen Asset Management, who does not plan to sell. ‘The risk is that if the ECB is serious about buying at the rate of 60 billion a month, the price impact could be quite material.’
The Euro to Canadian Dollar (EUR/CAD) exchange rate dropped to a low today of 1.4118.
Canadian Dollar (CAD) Exchange Rate Fluctuates on Crude Prices
With crude prices ever changing as traders attempt to gauge supply versus demand, the commodity-correlated ‘Loonie’ fluctuated against its major peers. Saudi’s oil Minister said demand is rising, stating; ‘Markets are calm now … demand is growing.’
‘Heating oil in New York Harbor is particularly tight, and we’re seeing good demand figures,’ said John Kilduff, founding partner of Again Capital in New York. ‘The bullishness that’s represented in the news on the refined-product front is going to carry the day here, despite another blockbuster crude inventory build.’
Additional ‘Loonie’ gains can be attributed to Bank of Canada (BOC) Governor Stephen Poloz, who stated that further rate cuts were unlikely. ‘Another curveball from Bank of Canada Governor Stephen Poloz has sharply reduced the odds of a rate cut at next week’s meeting,’ Bank of Montreal senior economist Benjamin Reitzes said.
Euro to Canadian Dollar (EUR/CAD) Exchange Rate Forecast to Hold Losses
Although oil prices have been particularly volatile, the Euro to Canadian Dollar (EUR/CAD) exchange rate is likely to hold losses for the remainder of Wednesday’s trade. Growing negative sentiment towards the ECB is likely to continue to weigh heavily on the Euro.
Thursday ought to see heightened EUR/CAD volatility with Canadian inflation data and German labour market data due for publication.
The Euro to Canadian Dollar (EUR/CAD) exchange rate reached a high today of 1.4172.