Euro Holds Ground Against CAD on Stronger-Than-Expected Eurozone Growth Data
The euro held its ground against the Canadian dollar on Thursday due to stronger-than-expected Eurozone growth data. The EUR/CAD pair traded steadily after Eurostat reported a 0.3% expansion in the first quarter, surpassing market forecasts of 0.2%. This growth rate is an improvement from the previous quarter's 0.9%, with Germany growing by 0.2%, France by 0.3%, and Italy by 0.4%. These figures indicate a broad-based recovery across the region.
The Canadian dollar, however, found support from rising crude oil prices, which climbed above $82 per barrel on Thursday. This is driven by supply concerns and stronger global demand signals. Despite this support, the CAD's upside was capped by domestic economic data showing a slowdown in retail sales and a softer jobs market.
The EUR/CAD pair is likely to remain range-bound in the near term, with traders weighing divergent monetary policy expectations between the European Central Bank (ECB) and the Bank of Canada (BoC). The ECB has signaled a potential rate cut in June, while the BoC is expected to maintain a cautious stance amid inflation pressures.