Eurozone HICP inflation data in focus as Euro retains gains against Canadian Dollar

Following the German and Eurozone HCOB PMI releases, continued Euro strength lifts EUR/CAD.
October HCOB Services and Composite PMIs strengthened in Germany but weakened across the Eurozone.
Potential crude oil price gains could support the Canadian Dollar as caution builds ahead of US-Iran decisions.

EUR/CAD trades near 1.5700. The cross is advancing for a third consecutive day during Wednesday’s European session. Following the German and Eurozone HCOB Purchasing Managers’ Index (PMI) releases, the Euro (EUR) is holding firm, keeping EUR/CAD supported. Attention now turns to the Eurozone Harmonized Index of Consumer Prices (HICP) figures scheduled for later in the day.

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At 52.5, Germany’s final HCOB Services PMI for October was above the previous 51.7 reading. Its Composite PMI also advanced, reaching 53.4 from 52.8. The Eurozone readings moved in the opposite direction: Services PMI slipped to 51.4 from 51.7, while Composite PMI fell to 51.7 from 51.9.

A potential increase in crude oil prices could support the commodity-linked Canadian Dollar (CAD), limiting further gains in EUR/CAD. Following the Democrats’ sweep of the US midterm elections, markets are turning cautious ahead of Washington’s decision on the US-Israeli war on Iran. 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 view, "some profit-taking and reduction in speculative long positions are justified, particularly after the sharp rally in October".

Euro Performance Today

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

	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. 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 intersecting cell.