The Canadian Dollar is trading at 0.65 against the Euro this morning, up 0.30% with a YTD change of 1.11%. The currency pair’s open rate was similar to their previous close at the 0.65 level. CAD/EUR is expected to have a daily range between 0.6568 and 0.6574, their 52-week range is forecasted to move between 0.62 and 0.69.
After dropping from the 0.69 level to 0.63 last March, the CAD/EUR exchange rate has been slowly recovering over the past month. At the beginning of February, CAD/EUR was at the 0.64 level and has made bearish growth over the previous weeks.
FX Street reported that “the single European currency has edged lower by 1% against the Canadian Dollar since the beginning of February. The currency pair breached the 50” period SMA last week.
CAD/EUR technical indicators also suggest that bulls will be waiting on EUR “selling signals on the daily time-frame chart” as the exchange rate is expected to continue growing moving into Q2.
With ongoing support from the oil and energy markets, CAD is forecasted to hold steady against the Euro which bears are hoping will benefit the exchange rate in the long term. Another factor if the pair hopes to sustain strength moving into April will be heavily dependent on the Canadian government lifting quarantine restrictions.
With more vaccinations arriving and being distributed across Canada, traders will be watching for the impact of having more economic stimulation in the retail, restaurant and travel industries.
By Surina Nath