In a fairly volatile day for the currency markets the Euro has declined against a strengthening Canadian Dollar as a result of comments issued by the Canadian Finance Ministry.
The Euro is currently trading against the Canadian Dollar in the region of 1.4051
The Euro had already suffered some losses before the North American session opened due to disappointing factory order data for the Eurozone.
Industrial production in the 17-nation currency bloc fell by 0.5 per cent instead of dropping 0.3 per cent as expected and the Euro consequently weakened.
Losses were extended as one European Central Bank official, Peter Praet, commented that the central bank continues to view asset purchases and negative rates as viable options for supporting the Eurozone’s recovery.
As one foreign exchange strategist was quoted as saying; ‘Our sense is that the Euro should be lower, especially on the crosses. We can go lower still because the ECB is in an important shift and we believe could ease policy further, while US growth appears to be picking up.’
Meanwhile, the Canadian Dollar advanced on several of its most traded peers as the Finance Ministry asserted that it will achieve a larger budget surplus from 2015.
According to Finance Minister Jim Flaherty, the Canadian government will post a budget surplus of C$3.7 billion in the fiscal year beginning in April 2015. This projection is significantly higher than the C$800 million surplus previously forecast.
Brent crude oil, a major Canadian export, also achieved a seven-month high as a result of renewed unrest in Libya and lent the ‘Loonie’ support.
In response to the Canadian Dollar’s movement currency strategist Jeremy Stretch observed; ‘While encouraging for domestic bonds, spread moves still favour attempts to the topside in USDCAD.’
While tomorrow’s Canadian new housing price index will be of interest, movement in the CAD/EUR pairing is more likely to result from influential GDP reports for Germany, France and the US, scheduled for release from 06:30 GMT.
Euro (EUR) Exchange Rates
As of 15:30
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3402 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8391 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4415 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6325 <
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4051 <