The EUR/CAD pair is an interesting one, in the sense that while both currencies involved in it are majors, the pair itself is not. The main reason behind this state of affairs is that trading volume on the pair is relatively low. The EUR/CAD has been remarkably stable lately.
The EUR
The common currency of 21 European countries, the EUR is used by the trading block known as the Eurozone. Hailed as one of the top achievements of the European Union, the EUR has been sailing troubled waters lately. Given that all EU members are compelled by treaty to eventually adopt it, there are 6 more countries that need to join the club in the future. In the near future though, the enlargement of the Eurozone does not appear likely/plausible.
The entity which exercises control over the price of the Euro via the manipulation of interest rates, is the ECB (European Central Bank).
The CAD
Up until 1871, Canadians used a variety of currencies for local and international trade. It was then that the CAD was introduced, unifying the national currency scene for the first time. The CAD was on the gold standard up until 1933, when it was pegged to the USD. It then floated and was pegged to the USD again, up until 1970, when it was left floating for good. The entity in control of the CAD is the Bank of Canada. BoC hasn’t tampered with the currency since 1988 though.
EUR/CAD Analysis
Canada is a dominion of the British Crown, and Britain is still a member of the EU (for at least another year). It is not a Eurozone member though. Canada’s trade is much more closely linked to the US and that explains why the value of the CAD is more closely correlated with the USD and the state of the US economy than anything else.
See more live currency charts