Euro strengthens against Canadian Dollar despite mixed German data
EUR/CAD edges lower after opening with a bullish gap, remaining in the positive territory and trading around 1.6180 during the European hours on Monday. The currency cross is holding its ground as the Euro (EUR) remains resilient despite mixed economic data from Germany.
The Euro (EUR) strengthened against the Canadian Dollar (CAD) on Monday despite mixed German economic data. The EUR/CAD pair opened with a bullish gap and remained in positive territory, trading around 1.6180 during European trading hours. Germany's retail sales fell 1.1% month-on-month in June, which was steeper than the forecasted 0.5% decline.
However, the Euro found support from positive industrial data, including a four-month high S&P Global Germany Manufacturing PMI of 52.2 in July. This rebound in factory performance was mirrored across the Eurozone, with the S&P Global Eurozone Manufacturing PMI increasing to 51.9 from 51.4 in June. Deutsche Bank analysts suggested that European equities outperformed as energy markets softened, citing a decline in Brent crude prices by -6.88% to $90.12/bbl.
The lack of new geopolitical tensions and reduced commodity-related concerns helped create a more supportive environment for European indices. FXS Speechtracker gave a relatively softer tone to the speech, indicating a mild downside risk for the Euro. The Euro's resilience was further bolstered by a weakening Canadian Dollar, which faced headwinds from falling crude oil prices due to news of a US President Trump's pause on planned military strikes against Iran. The EUR/CAD cross benefited from the commodity-linked Canadian Dollar's downward pressure.
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