EUR/CAD remains steady after five days of losses, trading around 1.6070 during the European hours on Wednesday.
The currency cross moves little as the Euro (EUR) holds ground following the release of Germany’s Harmonized Index of Consumer Prices (HICP) data
German inflation surged back to 2.8% in July, reversing a recent downward trend fueled by a sharp acceleration in energy costs. After slowing to 2.3% in June from 2.6% in May and 2.9% in April, consumer prices gathered fresh momentum. Ruth Brand, President of the Federal Statistical Office (Destatis), noted that energy prices continued to climb at an above-average pace, acting as the primary catalyst behind the month’s rising inflation rate.
Europe eyes China trade risks but underestimates global economic shifts Analysts at Rabobank caution that the Eurozone’s evolving stance toward China may be missing a deeper structural story. They note that “even as Europe warms up for a potential trade war with China, it does not grasp the scale of the change in the world economy it lives in,” suggesting policymakers risk focusing on near-term trade tensions while underestimating the broader transformation of the global economic landscape. The EUR/CAD cross could find some gains as the commodity-linked Canadian Dollar (CAD) struggles on lower oil prices.