Euro / Canadian Dollar - EUR/CAD

While the fluctuations of the Canadian Dollar (CAD) against the American Dollar seem to have a simple economic logic (as the Canadian and American economies are strongly linked via the density of their trade exchanges , and as the exchange value of the CAD really depends on the raw material, in particular oil, exchange rates, this is not the case of the crossed fluctuations of the Euro and the Canadian Dollar, of which variations registered since the beginning of the XXIst century are more complex, but also evolve faster.

Listing at EUR/CAD = 1.2722 in October 2000, the EUR/CAD exchange rate appreciates until a value equal to 1.4453 in February 2001, then decreases to 1.2847 in July 2001, after a long bullish movement begins (appreciation of the Euro) until January 2003 (EUR/CAD = 1.6445).

While the cross is stable during the year 2003 (with a small decrease: EUR/CAD = 1.5246 in November 2003), a new re-appreciation of the Euro happens until February 2004 (1.6739) and then the Euro keeps its levels for an entire year (EUR/CAD = 1.6198 in April 2005).

A small decrease happens until March 2006 (EUR/CAD = 1.3823) then a rise until March 2007 (EUR/CAD = 1.5656) and to finish a decrease until October 2007, the lower level of EUR/CAD = 1.3556 is reached at this moment.

So the Canadian Dollar punctually appreciates against the Euro during the year 2007 (important rise of the oil exchange rates) whereas its appreciation has been continuous against the American dollar since 2002.

It is to mention that during the same period, the Euro also clearly increased in value against the dollar.

At the beginning of the year 2008, the EUR/CAD and USD/CAD crosses follows parallel evolutions, the EUR/CAD cross reaches its higher point art 1.7152 in December 2008 in a context of a collapse of the oil exchange rates and of the world banking and stock-exchange crisis.

An adjustment intervenes then in a context of strong volatility (EUR/CAD = 1.5360 on February, 26th 2009, but again EUR/CAD = 1.6770 on March, 20th 2009, that represents a +/-10% variations in few weeks).

In October 2009, the EUR/CAD cross has an exchange value of 1.5807.