Euro Strengthens Against CAD on Inflation Data and Oil Price Decline

The Eurozone's HICP inflation data was released today, showing that monthly inflation rose by 0.4% and annual inflation eased slightly to 3.2%. These numbers matched or met expectations.

Meanwhile, the Canadian Dollar (CAD) is weakening due to falling crude oil prices, which have cooled down after reports of Saudi Arabia's plans to restore its damaged East-West pipeline within six weeks.

Strategists at Scotiabank point out that the Bank of Canada's policy settings remain accommodative and that there's a growing risk that interest rate normalization may start late this year, in line with their long-held forecast.