On Wednesday the Canadian Dollar advanced on the Euro as the common currency was restrained by disappointing German employment data.
While the Canadian Dollar was buoyed at the close of last week by on-target domestic inflation figures, the currency came off recent highs on Tuesday as commodity prices fluctuated.
Gold prices dipped as Ukraine-focused concerns eased and crude prices fell by 16 cents a barrel.
The ‘Loonie’ experienced a static trading session on Wednesday due to a lack of pertinent economic data for Canada, but was able to strengthen against a broadly weaker Euro.
The Euro posted widespread declines after unemployment in Germany, the Eurozone’s largest economy, unexpectedly increased.
Unemployment advanced by 24,000 in May.
Economists had anticipated a decline of 15,000.
Despite the increase in joblessness, the seasonally adjusted unemployment rate held at a 20 year low of 6.7 per cent.
The data saw economist Christian Schulz comment; ‘The mild winter, which had flattered German economic data a bit in the first quarter with strong domestic product growth and job-market gains, is now striking back. [But] Germany’s labour market remains on a strong positive trend despite the slight May setback’.
Euro losses were limited by separate reports showing an increase in Eurozone industrial/services confidence and an unexpected climb in the Eurozone’s business climate indicator for May.
While the Euro remained in a stronger position against the Pound, it looked set to close out local trading lower against the Canadian and US Dollars.
Tomorrow an absence of economic reports for both Canada and the Eurozone may restrain Euro to CAD fluctuations.
However, notable Canadian Dollar movement is likely to occur on Friday as Statistics Canada releases its GDP data for March and the first quarter as a whole.
Economists have estimated that the nation’s economy expanded by 1.7 per cent in the first quarter, year-on-year, and grew by 0.1 per cent in March, month-on-month.
A surprise to the upside could give the Canadian Dollar a boost before the weekend.
Investors with an interest in the Euro to Canadian Dollar exchange rate will also be taking an interest in German retail sales figures and Canada’s industrial product price report.
Euro (EUR) Exchange Rates
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