Euro maintains gains against Canadian Dollar as markets await Eurozone HICP inflation data

Following the German and Eurozone HCOB PMI releases, the Euro holds firm and EUR/CAD advances.
October’s HCOB Services and Composite PMIs rose in Germany, in contrast to declines in both Eurozone readings.
Potential gains in crude oil could support the Canadian Dollar as caution builds ahead of US decisions on Iran.

The release of HCOB Purchasing Managers’ Index (PMI) data for Germany and the Eurozone has left the Euro (EUR) holding firm, with EUR/CAD advancing for a third successive day. The cross is trading near 1.5700 in Wednesday’s European session. Attention now turns to the Eurozone Harmonised Index of Consumer Prices (HICP), due later in the day.

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October’s final German HCOB Services PMI rose from 51.7 to 52.5, while the Composite PMI increased from 52.8 to 53.4. The Eurozone readings moved in the opposite direction: the Services PMI slipped from 51.7 to 51.4, and the Composite PMI fell from 51.9 to 51.7.

A potential increase in crude oil prices may strengthen the commodity-linked Canadian Dollar (CAD), which could curb further gains in EUR/CAD. Meanwhile, markets are becoming cautious ahead of Washington’s decision on the US-Israeli war on Iran, following the Democrats’ sweep of the US midterm elections. Counting was still in progress, with Democrats securing majorities in both houses of Congress for the remainder of Trump’s second term.

Reuters cited Priyanka Sachdeva, head of market insights at Phillip Nova, as saying that "President Trump's conflicting signals, with military strikes continuing alongside statements downplaying further escalation, have made it difficult for traders to build strong directional conviction". In her view, "some profit-taking and reduction in speculative long positions are justified, particularly after the sharp rally in October".

Euro Records Its Strongest Daily Gain Against US Dollar

Today’s percentage moves in the Euro (EUR) against the major currencies listed appear in the table below. The Euro’s strongest performance was against the US Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.55%	-0.56%	-0.24%	-0.40%	-0.62%	-0.39%	-0.58%
EUR	0.55%		0.00%	0.32%	0.13%	-0.08%	0.15%	-0.03%
GBP	0.56%	-0.01%		0.34%	0.19%	-0.06%	0.15%	-0.04%
JPY	0.24%	-0.32%	-0.34%		-0.16%	-0.38%	-0.17%	-0.35%
CAD	0.40%	-0.13%	-0.19%	0.16%		-0.22%	-0.01%	-0.19%
AUD	0.62%	0.08%	0.06%	0.38%	0.22%		0.21%	0.04%
NZD	0.39%	-0.15%	-0.15%	0.17%	0.00%	-0.21%		-0.18%
CHF	0.58%	0.03%	0.04%	0.35%	0.19%	-0.04%	0.18%

Percentage movements between the major currencies are displayed in the heat map. Select the base currency in the left-hand column and the quote currency in the top row. To read EUR (base)/USD (quote), for instance, choose the Euro on the left and follow that row across to the US Dollar column; the intersecting cell gives the percentage change.