Euro Strengthens Against Loonie Amid Mixed German Data

The euro strengthened against the Canadian dollar on Tuesday, despite mixed German economic data. The EUR/CAD pair edged higher to 1.4670, up 0.3% from the previous close.

German industrial production fell by 0.4% in October, missing market expectations of a 0.2% decline. However, Germany's trade surplus widened to €17.8 billion in October, exceeding forecasts as exports rebounded by 1.2% month-on-month.

The divergent figures highlight the uneven recovery in Germany's manufacturing sector, which has been hampered by weak global demand and structural challenges. The Bank of Canada has signaled a cautious approach to monetary policy, with markets pricing in a 70% chance of a rate cut at its January meeting.