Find out everything you need to know about the Canadian dollar to euro exchange rate and the performance of each currency relative to the other.
Today’s mid-market rate
Exchange rate history – Canadian dollar to euro
The Canadian dollar was introduced as Canada’s official currency in 1858, replacing the Canadian pound. The seventh most traded currency on global foreign exchange markets, the Canadian dollar is often referred to as a commodity currency due to the strength of Canada’s raw materials industries.
It has historically traded at a lower value than the euro, which is the world’s second most traded currency after the US dollar and is legal tender in the 19 countries of the Eurozone. Since the euro entered full circulation in 2002, 1 Canadian dollar has traded at an average of 0.6863 euro cents, with a low of 0.5800 and a high of 0.8200.
During 2014 and early 2015, economic instability in the Eurozone saw the Canadian dollar gain ground against the euro, with Canada’s stable economy as a key factor. However, improvements in the European economic outlook and falling oil prices saw the value of the Canadian dollar fall in value relative to the euro.
The success of the proposed Trans-Pacific Partnership trade deal, which has been successfully negotiated but is yet to be finalized, is expected to have important consequences for the Canadian economy moving forward.
Laws and legal documents when transferring large sums of money into Europe
Countries using the euro as currency
Forecasting the CAD to EUR exchange rate based on historical data
The past can be a good indicator of the future. Depending on sociopolitical atmosphere, interest and inflation rates, foreign trade, public debt, and export to import price ratios all influence exchange rates. Below you can find the average exchange rate for the past ten years.
|CAD = EUR||0.6936||0.7057||0.6823||0.7314||0.7782||0.7269||0.7327||0.6311||0.6413||0.6820|
Data courtesy of X-Rates.
Euro historically strong against Canadian dollar
Since the full introduction of the euro in 2002, the Canadian dollar has been a consistent performer aided by the strength and stability of the Canadian economy. The euro, however, while always valued higher than the CAD, has experienced its fair share of ups and downs. During 2007 and 2008 when the US subprime mortgage crisis began to materialise, investors looked to the Eurozone for its strength and stability.
This contributed to the strong performance of the euro during this period, but it soon became apparent that the US recession was going to have global consequences. As the recession spread to Europe and the European Central Bank upped the subprime rate to 1.5%, the value of the euro dropped in comparison to the performance of the CAD. This led to the CAD’s highest ever value against the euro, peaking well above the 80-cent mark in mid 2012.Back to top
Value and exchange rates of the euro
Upon the introduction of the euro, conversions between currencies of participating countries to the euro relied on a triangulation process. The value of the euro in terms of exchange rates of currencies entering the euro, when they did, is pictured below.
Euro fluctuates against a weaker Canadian dollar
Graphs charting the value of the Euro across its history show plenty of fluctuation, which is to be expected of any currency but especially one which relies on the performance of the economies of the Eurozone’s 19 member countries. Most recently, the latest developments in the Greek debt crisis in 2015 dragged consumer confidence down and impacted upon most European economies. As a result, the value of the euro dropped against most major currencies, including the CAD.
Meanwhile, Canada’s economy, which is heavily influenced by commodity prices, has historically been a steady performer. 1 CAD has regularly traded in the 65-70 euro cents region across the past 10 years.
However, due to Canada’s close economic ties with the US, its economy experienced a slow recovery from the global recession. In the first half of 2015, Canada technically entered a recession following two consecutive quarters of declining GDP. While a rebound was expected in the third quarter, continually sluggish energy and commodities prices were expected to continue to have an impact.