Can Euro sustain gains against Canadian Dollar ahead of Eurozone HICP inflation data?

Euro strength lifts EUR/CAD after the release of HCOB PMI readings for Germany and the Eurozone.
October brought higher HCOB Services and Composite PMI readings in Germany, but both indicators fell across the Eurozone.
Possible crude oil gains could support the Canadian Dollar as caution builds ahead of US-Iran decisions.

Euro strength keeps EUR/CAD on course for a third straight day of gains, with the cross trading near 1.5700 in Wednesday’s European session. The Euro (EUR) continues to hold firm following the German and Eurozone HCOB Purchasing Managers’ Index (PMI) releases. Attention now turns to the Eurozone’s Harmonised Index of Consumer Prices (HICP) data, scheduled for later in the day.

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The final German HCOB Services PMI reading for October climbed from 51.7 to 52.5, while the Composite PMI advanced from 52.8 to 53.4. By contrast, the Eurozone Services PMI slipped from 51.7 to 51.4, alongside a drop in the Composite PMI from 51.9 to 51.7.

Potential gains in crude oil prices may support the commodity-linked Canadian Dollar (CAD), which could cap the EUR/CAD cross’s upside. Traders are turning cautious ahead of Washington’s decision on the US-Israeli war on Iran, after Democrats swept the US midterm elections. With vote counting still in progress, Democrats were 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 assessment, "some profit-taking and reduction in speculative long positions are justified, particularly after the sharp rally in October".

How Is the Euro Performing Today?

The Euro recorded its strongest performance against the US Dollar today. The table below sets out the Euro’s (EUR) percentage changes against the major currencies listed.

	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 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. For instance, choosing the Euro on the left and following its row across to the US Dollar gives the percentage change for EUR (base)/USD (quote) in the corresponding cell.