The Euro is trading at 1.56 against the Canadian Dollar this morning, up 0.11% with a YTD return of 7.94%. The pair’s open rate was 1.5634, slightly lower than the previous close of 1.5674. EUR/CAD daily range should sit between 1.56 and 1.57, the 52-week range is anticipated to fluctuate between 1.42 and 1.59.
Over the last month, EUR has gained strength, bouncing back to the 1.57 support level which was last reached at the end of September. During the final weeks of February EUR/CAD was trading below the 1.43 level; within days the pair’s exchange rate skyrocketed as COVID-19 lockdown measures became more prevalent. By mid-March EUR/CAD jumped up to trading at the 1.56 level and has managed to stay between the 1.50 and 1.59 levels throughout 2020.
The last time EUR/CAD saw an exchange rate this high was in March 2018. Traders are seeing bullish trends with these currencies as the Euro remains stable, a “corrective pullback is now being followed by more impulsive buying, further confirming that bulls are in short-term control” according to FXStreet.
After detecting a second strain of the coronavirus circulating in Europe that is said to be 70% more infectious than COVID-19, there has been an overwhelming number of new lockdown measures and travel bans world-wide. Until more vaccines are distributed and concrete research is provided regarding the new strain of the virus, many traders investing in the Euro are expected to lean towards bearish trends moving into the new year.
By Surina Nath