Euro gains against Canadian Dollar following German data
EUR/CAD gains over 0.5% after registering modest gains the previous day, trading around 1.5680 during Asian hours on Monday. The currency cross rises as the Euro (EUR) remains stronger following the release of German economic data.
Commerzbank's Thu Lan Nguyen highlights the potential for EUR/USD to experience renewed volatility as policy risks loom. After settling near 1.12 following a drop from 1.16, she notes that implied volatility in options markets has decreased once more. While she acknowledges that limited differences in expectations between the Federal Reserve and the European Central Bank, coupled with smaller and more synchronized interest rate cycles, have helped to stabilize foreign exchange swings, she warns that the current calm in FX markets is premature given mounting geopolitical and fiscal risks.
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