Tuesday saw a small lift for the EUR/CAD, hovering near 1.6345–1.6350 while everyone watched for Canada’s CPI numbers. Trading remained calm; neither the Euro nor the Canadian dollar strongly responded to what’s been happening economically.
The Canadian dollar lost some ground because surveys from the Bank of Canada aligned with predictions of further cuts to interest rates. Moreover, falling oil prices weighed on the Loonie (Canadian one-dollar coin), adding to its struggles in forex markets.
The Euro stumbled when S&P lowered France’s credit score, citing worries about the country’s spending plans as the reason. Though a softer Canadian dollar offered a bit of help, this news restricted how much the Euro could climb. Consequently, a slight strengthening of the US dollar further held back the Euro’s progress against the Canadian dollar.
People are eager to hear Christine Lagarde, the head of the European Central Bank (ECB), speak at a climate conference today. However, based on her statements, the Euro is unlikely to change because she is unlikely to discuss financial issues.
With Canadian inflation numbers on deck, traders seem hesitant—the report might influence the Bank of Canada’s next move, consequently affecting the direction of the Canadian dollar. Right now, the euro versus the loonie hovers a little under 1.6350, gaining some ground despite general jitters in trading.
The Canadian dollar lost ground versus many currencies today—the New Zealand dollar particularly—though it didn’t move much when stacked up against the British pound or Swiss franc.
