EUR/CAD depreciates to near 1.5100 after EMU HICP data, Canada’s inflation eyed

Source Fxstreet
  • EUR/CAD loses ground following key economic data from the European Monetary Union.
  • EMU HICP MoM showed no change in July, while Core inflation declined by 0.2%.
  • The commodity-linked CAD rises despite a losing streak in WTI prices.

EUR/CAD retraces its recent gains from the previous two days following the key data on business activity and consumer prices from the European Union. The pair trades around 1.5100 during the European session on Tuesday.

The Harmonized Index of Consumer Prices (HICP) data from the European Monetary Union (EMU) showed no change month-on-month in July, as expected. Meanwhile, Core HICP declined by 0.2%, consistent with the decrease observed in June.

Germany’s Producer Price Index (PPI) declined by 0.8% year-over-year in July, in line with expectations, following the previous decline of 1.6%. Meanwhile, the monthly index showed a 0.2% increase, also as anticipated.

Investors anticipate that the European Central Bank (ECB) will gradually reduce interest rates. ECB policymakers have hesitated to commit to a specific rate-cut path due to concerns that price pressures could reaccelerate.

The commodity-linked Canadian Dollar (CAD) outperforms despite the continuation of a bearish streak in crude Oil prices and undermines the EUR/CAD cross. West Texas Intermediate (WTI) Oil price continues its losing streak for the third successive day, trading around $72.90 per barrel at the time of writing. This downside is attributed to the de-escalation of the geopolitical tensions in the Middle East.

On Monday, US Secretary of State Antony Blinken announced that Israel had agreed to a proposal to resolve the issues delaying a Gaza ceasefire and urged Hamas to follow suit. However, Hamas senior official Osama Hamdan criticized Blinken's statement that Israeli Prime Minister Benjamin Netanyahu had accepted an updated proposal. Hamdan claimed it "raises many ambiguities" and is "not what was presented to us nor what we agreed on," per Reuters.

Traders are likely to focus on the risks of slower economic growth in Canada and position themselves ahead of the Consumer Price Index (CPI) data release by Statistics Canada, scheduled for later in the North American session. This inflation report is expected to indicate further easing of inflation in July, which could potentially allow the Bank of Canada (BoC) to continue its monetary loosening cycle.

Economic Indicator

Harmonized Index of Consumer Prices (MoM)

The Harmonized Index of Consumer Prices (HICP) measures changes in the prices of a representative basket of goods and services in the European Monetary Union. The HICP, released by Eurostat on a monthly basis, is harmonized because the same methodology is used across all member states and their contribution is weighted. The MoM figure compares the prices of goods in the reference month to the previous month. Generally, a high reading is seen as bullish for the Euro (EUR), while a low reading is seen as bearish.

Read more.

Last release: Tue Aug 20, 2024 09:00

Frequency: Monthly

Actual: 0%

Consensus: 0%

Previous: 0%

Source: Eurostat

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Ethereum (ETH) Price Closes Above $3,900 — Is a New All-Time High Possible Before 2024 Ends?Once again, the price of Ethereum (ETH) has risen above $3,900. This bounce has hinted at a further price increase for the altcoin before the end of the year.
Author  Beincrypto
Dec 17, 2024
Once again, the price of Ethereum (ETH) has risen above $3,900. This bounce has hinted at a further price increase for the altcoin before the end of the year.
placeholder
Ethereum slides below $3,000 as sellers defend $3,020 and $2,880 becomes the key lineEthereum fell below $3,000 after failing at $3,200, with resistance at $3,020 and key support at $2,880; a break lower could target $2,800 and $2,750, while a rebound needs $3,120–$3,150.
Author  Mitrade
Jan 21, Wed
Ethereum fell below $3,000 after failing at $3,200, with resistance at $3,020 and key support at $2,880; a break lower could target $2,800 and $2,750, while a rebound needs $3,120–$3,150.
placeholder
Bitcoin’s Whale Map Shifts as BTC Drops Below $90,000Bitcoin fell below $90,000 to around $88,300 as risk-off headlines hit markets, while on-chain data shows new whales now lead Realized Cap with a ~$98,000 cost basis and ~$6B unrealized losses.
Author  Mitrade
Jan 22, Thu
Bitcoin fell below $90,000 to around $88,300 as risk-off headlines hit markets, while on-chain data shows new whales now lead Realized Cap with a ~$98,000 cost basis and ~$6B unrealized losses.
placeholder
Gold moves away from record high as safe-haven demand fades on easing trade war concernsGold (XAU/USD) is seen extending the previous day's modest pullback from the vicinity of the $4,900 mark, or a fresh all-time peak, and drifting lower through the Asian session on Thursday.
Author  FXStreet
Jan 22, Thu
Gold (XAU/USD) is seen extending the previous day's modest pullback from the vicinity of the $4,900 mark, or a fresh all-time peak, and drifting lower through the Asian session on Thursday.
placeholder
Bitcoin Slides Into Weekly Close as Bulls Confront $86K Price TestBitcoin has started to lose momentum as U.S. futures prepare for opening, with markets bracing for anticipated volatility catalysts. The cryptocurrency witnessed multi-day lows leading up to the end of the week, as investors face a looming period of macroeconomic uncertainty.
Author  Mitrade
6 hours ago
Bitcoin has started to lose momentum as U.S. futures prepare for opening, with markets bracing for anticipated volatility catalysts. The cryptocurrency witnessed multi-day lows leading up to the end of the week, as investors face a looming period of macroeconomic uncertainty.
Related Instrument
goTop
quote