Euro investors will have been dismayed to see yet more unimpressive data from the currency bloc’s largest economy. A disappointing Canadian domestic data publication, however, has seen the EUR/CAD exchange rate gain fractionally, although it still lingers near a yearly-low.
The Euro to Canadian Dollar exchange rate is currently trending in the region of 1.4093.
A set of less-than-impressive data publications on Monday saw the single currency slump further down the charts; setting itself up for the title of poorest performing currency in 2014.
German factory orders declined on a yearly basis having contracted significantly in August. Also, the German and Eurozone Retail PMIs took a downward slide.
A sparse Canadian economic calendar of late has seen the ‘Loonie’ (CAD) generally trending lower against high-yielding currencies. Monday’s data, however, saw a ‘Loonie’ rebound after the Ivey PMI eclipsed the median market forecast of a rise from 50.9 to 52.5, with the actual result advancing to 58.6.
The Euro to Canadian Dollar exchange rate has hit a low today of 1.3971.
Yet another soft data publication from Germany has seen the Euro continue to decline against the majority of its most traded currency competitors.
Year-on-year German Industrial Production fell beyond the market consensus of a contraction of –0.5%, with the actual data showing production to have cooled by -2.8%.
Less-than-impressive Canadian data on Tuesday has seen a reversal of some of the gains made on Monday.
Canadian Building Permits was forecast to contract by -6.5% having registered growth of 11.6% previously, but the actual data showed further reduction by -28.3%.
Forecast for the Euro to Canadian Dollar exchange rate
With a complete absence of European economic data on Wednesday, the single currency is likely to continue trending lower against its major peers.
A solitary Canadian domestic data publication on Wednesday has the potential to provoke volatility. Those invested in the ‘Loonie’ will be hoping that Housing Starts meet with the market consensus of a rise from 192, 400 to 197,800.
Thursday’s German Trade Balance data will be telling for Euro traders. Another disappointing German print could spell disaster for the single currency. Most importantly, in terms of the provocation of Euro volatility, will be the European Central Bank’s monthly report due for publication on Thursday.
Friday will be a key day for ‘Loonie’ investors. The Canadian Net Change in Employment and Unemployment Rate will be reports to watch for their potential to spark market movement.
The Euro to Canadian Dollar exchange rate has reached a high today of 1.5536.
UPDATE
The Euro to Canadian Dollar exchange rate is currently trending in the region of 1.4124.
A complete absence of European data on Wednesday doesn’t necessarily make the single currency exempt from volatility. However, there is little movement for the Euro to Canadian Dollar exchange rate.
Canadian Housing Starts has the potential to provoke changes for the EUR/CAD pairing. Housing Starts are forecast to rise from 192, 400 to 197, 800.
As markets fluctuate on trader risk aversion strategies it is likely that the Euro and the Canadian Dollar will decline against safe haven assets.
Euro (EUR) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Euro,
,US Dollar,1.2646,
Euro,,Canadian Dollar,1.4119,
Euro,,Pound,0.7844,
Euro,,Australian Dollar,1.4323,
US Dollar,,Euro,0.7908,
Canadian Dollar,,Euro,0.7083,
Pound Sterling,,Euro,1.2745,
Australian Dollar,,Euro,0.6983,
[/table]
