Why the Canadian Dollar’s Surge Against the Euro Could Redefine Your Currency Playbook Overnight
Ever wonder what happens when the Canadian Dollar decides to outshine the Euro in the financial dance? Well, buckle up — the EUR/CAD pair took a 0.40% tumble recently, riding the wave of Canada’s inflation data that just didn’t play by the expected script. Instead of the predicted cooling, inflation showed a little stubborn heat, nudging the annual CPI higher and shaking up the Bank of Canada’s interest rate plans. Markets caught the scent, swiftly dialing back their bets on rate cuts, and the Loonie found its stride, boosted further by a bounce in oil prices. Meanwhile, over in Europe, despite dodging political landmines, the Euro seems to be limping, facing its own set of economic hurdles like soft producer prices in Germany and a shaky French government’s budget battles. It’s a vivid reminder that in the currency world, fortunes can flip on a dime — isn’t it fascinating how a country’s inflation report can sway global investors like a maestro’s baton? Let’s dive deeper into how these shifts not only move markets but also ripple through the broader economy. LEARN MORE.
EUR/CAD drops by 0.40% on Tuesday at the time of writing, trading around 1.6270, as the Canadian Dollar (CAD) appreciates following stronger-than-expected inflation data. According to Statistics Canada, the Consumer Price Index (CPI) rose by 0.1% MoM in September, compared with a 0.1% decline expected, while the annual rate accelerated to 2.4% after 1.9% in August. The Core Consumer Price Index increased to 2.8% YoY, moving further away from the Bank of Canada’s (BoC) 2% inflation target.
These firmer figures reduce expectations for further BoC interest rate cuts at the October meeting. According to Reuters, markets were pricing in nearly a 77% probability of a 25-basis-point cut last week, but they are now adjusting their forecasts. The prospect of a delay in further monetary easing supports the Loonie, also helped by West Texas Intermediate (WTI) US Oil prices rebounding more than 1% for the day.
On the macroeconomic front, the Bank of Canada’s latest Business Outlook Survey released on Monday already indicated a slight improvement in business sentiment but also lingering caution regarding US tariffs and weak demand. This backdrop, combined with resilient inflation, could prompt the BoC to pause before implementing any further policy adjustments.
In Europe, the Euro (EUR) weakens despite French Prime Minister Sébastien Lecornu surviving last week’s no-confidence votes, which helped avert an immediate political crisis. However, investors remain cautious about the government’s fragility and the challenges of pushing a tightening budget through a deeply divided parliament.
In Germany, data published by Destatis showed that the Producer Price Index (PPI) fell by 0.1% in September, contrary to expectations of a 0.1% rise. The persistent weakness in producer prices highlights ongoing disinflationary pressures in the Eurozone’s largest economy.
Canadian Dollar Price Today
The table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies today. Canadian Dollar was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.27% | 0.18% | 0.90% | -0.08% | 0.29% | 0.29% | 0.38% | |
| EUR | -0.27% | -0.09% | 0.60% | -0.35% | 0.03% | 0.01% | 0.11% | |
| GBP | -0.18% | 0.09% | 0.69% | -0.25% | 0.12% | 0.11% | 0.20% | |
| JPY | -0.90% | -0.60% | -0.69% | -0.95% | -0.58% | -0.59% | -0.48% | |
| CAD | 0.08% | 0.35% | 0.25% | 0.95% | 0.37% | 0.37% | 0.46% | |
| AUD | -0.29% | -0.03% | -0.12% | 0.58% | -0.37% | -0.01% | 0.06% | |
| NZD | -0.29% | -0.01% | -0.11% | 0.59% | -0.37% | 0.01% | 0.09% | |
| CHF | -0.38% | -0.11% | -0.20% | 0.48% | -0.46% | -0.06% | -0.09% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Canadian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CAD (base)/USD (quote).
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