Forex Market: EUR/CAD extends daily losses on upbeat Canadian manufacturing sales data

The euro extended daily losses against the loonie, as the Canadian dollar is best known, after official data revealed Canadian manufacturing shipments rose in January by the most since July last year.

EUR/CAD touched a session low at 1.5332 at 12:51 GMT, after which consolidation followed at 1.5341, losing 0.3% for the day. Support was likely to be received at March 13th low, 1.5310, while resistance was to be met at March 17th high, 1.5448.

Statistics Canada reported today that manufacturing shipments rose 1.5% in January from a month ago, the most since July and exceeding analysts estimates of a 1% increase. Decembers reading was revised to a 1.5% drop, from a previously reported 0.9% decline.

Loonies demand was pressured yesterday, after it became clear the value of securities transactions between Canadian residents and foreign investors unexpectedly declined in January. The corresponding figure reached 1.09 billion CAD in January, while preliminary estimates pointed to a figure of 3.24 billion CAD.

Meanwhile, the 18-nation common currency was pressured after economic sentiment data for Germany and for the euro zone as a whole came in well-below expectations.

Economic sentiment in the largest euro area economy, Germany, deteriorated sharply, reaching a 7-month low in March, data by the ZEW Centre for Economic Research showed today.

The ZEW (Zentrum für Europäische Wirtschaftsforschung), reported that its index of German economic sentiment slid by 9.1 basis points to reach 46.4 this month, the weakest level since August, from a reading of 55.7 in February. At the same time, analysts had expected a smaller drop by 2.7 basis points to 53.0 this month.

In addition, the euro area economic sentiment also registered a decline, coming in at 61.5 in March, down from 68.5 in the previous month and as analysts projected the index will decline to 67.3 this month.

Elsewhere, EUR/SEK touched a two-week low at 8.8191 at 10:38 GMT, after which the pair consolidated at 8.8239, losing 0.22% for the day. Support was likely to be received at March 5th low, 8.8130, while resistance was to be encountered at March 17th high, 8.8932.