EUR/CAD Edges Higher as Germany's HICP Data Looms

The EUR/CAD exchange rate has appreciated to around 1.6120 during European hours on Monday, following two days of losses.

Traders are closely watching Germany's preliminary Consumer Price Index (CPI) and Harmonized Index of Consumer Prices (HICP) inflation data, due later in the day.

Strategists at BNY Mellon note that the policy backdrop is becoming increasingly challenging for ECB doves, as key inflation releases approach. They highlight recent 'upside surprises' in France and Spain have provided validation for the hawks, reinforcing the case for further tightening.