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Euro strengthens versus Canadian dollar ahead of Eurozone HICP

EUR/CAD rose to about 1.6010 as a broader retreat in global bond yields helped support the shared currency.

Reported · Written up by our desk · Major Pairs

The euro gained versus the Canadian dollar in early European trading, with EUR/CAD up to around 1.6010 after a modest loss in the prior session, according to FXStreet.

Traders focused on the upcoming preliminary Eurozone Harmonized Index of Consumer Prices (HICP) for September, scheduled for release later Friday, which is expected to shape near term rate expectations.

FXStreet also pointed to support from a broader retreat in global bond yields, lifting overall market sentiment, but noted that euro gains have been capped by worsening fiscal concerns in France.

France's public debt has risen to 119% of GDP, pushing its 10 year government bond yield to 4.96%, the highest since August 2002, FXStreet said. It also cited French Finance Minister Roland Lescure's pledge to restore fiscal discipline, including targeting a 5% budget deficit next year before aiming for the European Union's 3% ceiling by 2029.

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