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Euro strengthens versus Canadian dollar as Eurozone PMI rebounds

EUR/CAD holds near 1.6240 after the Eurozone composite PMI rebounded to 52.0, while Canada’s dollar faced pressure from weaker energy prices.

Reported · Written up by our desk · Major Pairs

EUR/CAD extended gains into the European session, trading around 1.6240, as the euro received support from improving purchasing managers’ index data across the eurozone.

According to FXStreet, the HCOB Eurozone Composite PMI rebounded into expansion territory in July, rising to 52.0 from 50.0 in June. The report also cited services momentum, with the Eurozone Services PMI increasing to 51.7 from 49.4, alongside Germany returning to growth for the first time since March, with its Composite PMI at 51.3.

FXStreet said analysts at Rabobank highlighted a divergence within the region, pointing to stronger final readings for Italy and Spain, while noting that final prints for services in other areas could have deteriorated further as Middle East tensions worsened during the survey period.

On the other side of the pair, FXStreet attributed the euro’s outperformance to relative weakness in the commodity-linked Canadian dollar, linked to falling energy markets. The outlet noted WTI was around $75.40 per barrel at the time of writing after trying to recover from nearly 13% losses over two sessions, with crude prices getting a modest boost from reports related to an attack on a Saudi vessel in the Red Sea.

Latest closeWTI crude $75.32 ▼6.2%

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