Euro Edges Higher Against CAD Amid Weak German Retail Sales
The Euro (EUR) gained against the Canadian Dollar (CAD) on Wednesday, trading around 1.6100 during European hours. This modest gain comes despite weak German Retail Sales data for August.
German Retail Sales grew 1.3% month-on-month (MoM), falling short of the estimated 2.0% expansion. However, July's sharp contraction was revised upward to -3.2% from -3.4%. On an annualized basis, Retail Sales contracted by 0.4% in August following a 2.5% drop in July.
The Euro's resilience is also due to upcoming data releases, including German Unemployment Change for August and the preliminary Harmonized Index of Consumer Prices (HICP) for September. Market expectations suggest price pressures will accelerate to 3.1% year-on-year from 2.9% in August.
The Canadian Dollar drew support from oil prices recovering their daily losses, but gains eventually eased as Middle Eastern supply flows improved. Crude oil prices were also influenced by the US government's plan to release up to 40 million barrels from the Strategic Petroleum Reserve (SPR).