The Canadian Dollar has made its biggest gains against the Euro since the start of the year after economic data showed that Europe’s recession deepened more than economists had been expecting.
The currency is also edging upwards towards parity with its US relation as the G-20 prepares to gather for a two day meeting in Moscow which is due to start tomorrow. Its gains against Cable where helped after US jobless claims fell by a greater margin than had been predicting, hinting that Canada’s biggest trade partner is still on course for a recovery.
Eurostat, the European Union’s statistics office said that the Eurozone economy had shrunk by 0.6% in the final quarter of 2012. The decline was larger than the predicted 0.4% contraction made by economists and as a result the single currency has suffered against the majority of its peers. Worryingly for Europe, Germany the region’s biggest economy is beginning to show signs of the contagion spreading through the region. The nation’s currency weakened by 0.6% in the fourth quarter.
Blake Jepersen the managing director of Forex at the Bank of Montreal told Bloomberg, “The Canadian Dollar has done fairly well, especially against the Euro. Generally speaking, people are somewhat optimistic about global growth this year, especially in some of the emerging market and commodity economies, so we’re seeing a boost from that.”
The worsening picture for the region benefitted the Canadian currency as investor looked elsewhere for better yields and safer harbours. Canada’s main export of Crude Oil also contributed to the currency’s rise after seeing its price rise by 12 cents to $97.13 a barrel.
Current Canadian Dollar Exchange Rates
The Canadian Dollar to Euro exchange rate is currently trading at 0.7487
The Canadian Dollar to Pound Sterling exchange rate is currently trading at 0.6439
The Canadian Dollar to US Dollar exchange rate is currently trading at 0.9983
The Canadian Dollar to Australian Dollar exchange rate is currently trading at 0.9649
The Canadian Dollar to New Zealand Dollar exchange rate is currently trading at 1.1767
The Canadian Dollar to Emirati Dirham exchange rate is currently trading at 3.6664
The Canadian Dollar to Swiss Franc is currently trading at 0.9205
The Canadian Dollar to Japanese Yen exchange rate is currently trading at 93.1070
These exchange rates were correct as of 15:10 pm GMT
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