EUR-CAD Exchange Rate Rises following Canadian Retail Sales Washout Today
The Euro has advanced considerably against the Canadian Dollar today, mainly on account of the day’s Canadian results being a let-down rather than the anticipated Eurozone figures offering any significant cause for joy among speculators.
Canada’s only major results of the week, the Retail Sales figures for July, both failed to meet with expectations. The base monthly figure rose from 0.4% to 0.5% instead of the predicted 0.7% and the variant Less Autos fell from 0.5% to 0% instead of staying put.
The Euro has hardly had a supportive set of results this morning, however. The French annual GDP rose from 1% to 1.1% today along with the French PMIs growing above expectations but the more significant German and Eurozone PMIs fell past forecasted declines and sent the common currency into an overall downtrend.
On the plus side of results today, developments in the US have supported the Euro in the pairing thanks to Fed Bank of Atlanta President Dennis Lockhart making extremely bullish remarks regarding a possible US interest rate increase before the end of the year and a stagnation of the US Manufacturing PMI for September when a drop was predicted has also strengthened the ‘Buck’ and conversely weakened the ‘Loonie’.
Lack of Canadian Data this Week offset by Pessimistic High-Impact US Release Tomorrow, Decline of EUR-CAD Possible
There are no further Canadian economic results due this week, but information from the Americas may still have an impact on the EUR-CAD exchange rate before the week is over. The US Durable Goods Orders for August are due out tomorrow and damagingly for the ‘Greenback’, a -2.3% decline is expected in the figure after the previous rise of 2.2%. Several Eurozone releases are also due out tomorrow – the German GFK Consumer Confidence Survey and the German IFO Assessments for September. Declines have been predicted in all available fields, therefore if this and the predictions for the US results are accurate, it remains distinctly possible that the Euro will fall into a major downtrend against the Canadian Dollar.
Friday brings the difficult-to-interpret Eurozone Money Supplies for August, but the more straightforward German Import Price Indices for August are also due for release. No prediction has been made for the monthly figure but in a further blow against Eurozone optimism, a -3.1% fall is expected for the annual variant.