Euro Rises Against CAD Ahead of Eurozone Inflation Data
The Euro has gained against the Canadian Dollar ahead of the upcoming Eurozone preliminary HICP inflation report. The EUR/CAD pair rose as lower global bond yields supported the Euro, while softer crude oil prices weighed down the CAD.
Falling bond yields have bolstered overall market sentiment, providing underlying support to the shared currency. However, gains in the Euro remain constrained by worsening fiscal troubles in France, where public debt has ballooned to 119% of GDP, driving the country's 10-year government bond yield up to 4.96%, its highest level since August 2002.
Rabobank analysts note that France is set to unveil its latest budget plan, with policymakers hoping to lower its budget deficit and soothe unease in the bond market. Both tax hikes and spending cuts have been mooted as Paris seeks to reassure investors against a backdrop of elevated debt levels and heavy issuance.