Euro steadies against Canadian Dollar following Germany’s Factory Orders data
EUR/CAD declines after opening at a bullish gap, remaining steady at 1.6040 during the early European hours on Friday.
The Euro (EUR) remained relatively stable against the Canadian Dollar (CAD) after opening higher, settling near 1.6040 during early European sessions on Friday. This steadiness came as the Euro rose 2.5% in July, surpassing forecasts of a 0.3% increase, and followed a 3.7% gain in June. German industrial output orders grew by an impressive 13.1% year-over-year, close to double the 7.2% increase seen in June.
Eurozone retail sales are expected to rebound by 0.3% month-on-month in July, equalizing the 0.3% drop recorded in June. ECB policymaker Philip Lane is set to speak to reporters, likely reinforcing the central bank's readiness for further interest rate hikes. Analysts from Commerzbank noted that BoC Governor Tiff Macklem emphasized persistently high inflation and increased upside risks due to the Middle East conflict and the renewed US trade dispute.
He cautioned that rising energy prices could further complicate the bank's policy path. In the daily chart, EUR/CAD traded at 1.6040, remaining under both the nine- and 50-period Exponential Moving Averages (EMAs), suggesting potential caps to rallies due to overhead supply. The next resistance levels are at the nine-period EMA near 1.6078 and the 50-period EMA around 1.6105, should buyers attempt a corrective bounce.
With no nearby structural support, a break below current prices could lead to further downside extension until a new demand zone is formed.
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