Euro to Canadian Dollar (EUR/CAD) Exchange Rate Dives on Canadian Employment Data
In spite of a crash in global oil prices the Canadian Dollar has advanced against its most traded currency competitors on Friday. This can be attributed to much better-than-expected labour market data. Meanwhile, an absence of European data has seen the single currency firm up a little as trader risk aversion strategies take precedence.
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The Euro to Canadian Dollar exchange rate is currently trending in the region of 1.4144.
On Thursday the single currency depreciated against the majority of its peers after yet more disappointing German data. German Trade Balance was forecast to drop from 23.5 billion to 17.7 billion, but the actual result showed a declination to 14.1 billion.
Additionally the German Current Account, seasonally adjusted exports and seasonally adjusted imports all diminished beyond the median market forecasts.
Thursday’s Canadian data printed relatively positively allowing the ‘Loonie’ (CAD) to hold in a good position despite a softened US Dollar. The yearly New Housing Price Index met with the market consensus of a rise from 1.4% to 1.5%. On a monthly basis housing prices advanced beyond the median market forecast of a rise from 0.0% to 0.1%, with the actual result increasing to 0.3%.
The Euro to Canadian Dollar exchange rate has dropped to a low today of 1.4046.
An absence of European data on Friday has seen the single currency advance amid trader risk aversion strategies. The International Monetary Fund published a report which suggested that there is a high likelihood of a fresh financial crisis if the period of low interest rates is prolonged. ‘Accommodative policies aimed at supporting the recovery and promoting economic risk taking have facilitated greater financial risk taking,’ the IMF said.
Canadian labour market data has printed very positively on Friday. Net Change in Employment was forecast to show an additional 20,000 new jobs having lost 11,000 positions in August, but Septembers print showed a huge increase of 74,100 new jobs. This, in turn, allowed the Unemployment Rate to positively decline from 7.0% to 6.8%.
The better-than-expected Canadian data has allowed the ‘Loonie’ to hold in a high position against the majority of its peers despite a huge declination in global oil prices. ‘It’s been a massive sell-off,’ Thina Saltvedt, an analyst at Oslo-based Nordea Markets, said by phone. ‘There are no trigger points to drive prices up. The Asian market is flooded with oil. There are more and more signs that OPEC doesn’t cooperate well these days, and it doesn’t look good if OPEC isn’t willing to tighten things up.’
Forecast for the Euro to Canadian Dollar Exchange Rate
The EUR/CAD exchange rate is likely to appreciate a little when oil price concerns take precedence after the surge from Canadian labour market data has worn off. European Central Bank officials are making speeches in Washington later on Friday which may initiate Euro volatility.