EUR/CAD Slumps Amid Weak German Data and Escalating Middle East Tensions

The EUR/CAD currency cross remains under pressure as the Euro continues to lose ground against the Canadian Dollar. On Friday, the EUR/CAD traded around 1.6100 during European hours, with losses extending for a second consecutive day.

The decline in the Euro is attributed to weak German PMI data released earlier in the day. Germany's flash HCOB Composite PMI fell to 51.0 in August, lower than the expected 51.3. The services sector was particularly affected, with a reading of 48.5 indicating contraction.

In contrast, the manufacturing sector showed resilience, with a surge to 54.1 in August, beating market forecasts.

The Canadian Dollar receives support from rising crude oil prices, fueled by escalating tensions between the US and Iran over control of the Strait of Hormuz. The US has proposed measures to restrict Iran's access to global commercial and financial networks, aiming to force negotiations regarding its nuclear program and regional conflicts.