EUR/CAD clinches 2-day tops around 1.5160 on CA CPI

  • The cross moves higher to 2-day peaks in the 1.5160/70 band.
  • CAD retreats from yesterday’s multi-month tops in the mid-1.5000s.
  • Canadian CPI rose 0.3% MoM. Retail Sales expanded 0.6% MoM.

The selling pressure around the Canadian Dollar is now picking up pace and lifting EUR/CAD to fresh 2-day tops in the 1.5160/70 band.

EUR/CAD higher post-Canadian data

The cross is gaining extra upside momentum after key Canadian inflation figures came in on the soft side during April. In fact, headline consumer prices measured by the CPI rose at a monthly 0.3% and 2.2% over the last twelve months, both prints coming in below estimates.

Further data saw Core CPI at 0.1% inter-month and 1.5% on an annualized basis (vs. 1.4% expected).

Still in Canada, Retail Sales came in mixed, with headline sales up 0.6% MoM in March and Core sales contracting more than initially estimated 0.2% MoM.

In the meantime, the cross is looking to add to the rebound from Thursday’s multi-month lows in the mid-1.5000s, despite the ongoing and persistent selling bias around the European currency.

EUR/CAD levels to watch

As of writing the cross is gaining 0.32% at 1.5153 and a surpass of 1.5203 (200-day sma) would expose 1.5319 (high May 14) and finally 1.5377 (21-day sma). On the other hand, the immediate support is located at 1.5047 (low May 17) followed by 1.4920 (low Dec. 6 2017) and then 1.4815 (2018 low Jan.8).

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