Euro loses ground on Canadian dollar

The euro has continued its fall on the Canadian dollar, as the single currency accumulated a 0.07 per cent daily loss, reports Fxstreet.com.

Canada is set to announce its GDP and raw materials price index later today. It is widely anticipated that the country’s GDP month-on-month growth will be at zero per cent, while there should be an increase of 0.2 per cent in the raw material price index.

On the other hand, however, the EMU’s CPI fell short of the 2.7 per cent which had been expected, coming in at 2.6 per cent instead. Meanwhile, the money supply increased by more than anticipated in March, hitting 2.8 per cent and 3.2 per cent month-on-month and year-on-year respectively.

The eurozone’s biggest economy, Germany posted its latest retail sales results, with month-on-month growth of 0.8 per cent and year-on-year growth of 2.3 per cent. However, S&P has downgraded 16 Spanish banks, a factor that could explain why the single currency is declining despite positive indicators.

At present, the pair is trading at 1.2980, while resistance is at 1.3030, ahead of 1.3064 and 1.3090. On the downside, support is at 1.2970, followed closely by 1.2944 and 1.2910.