EUR/CAD halts its four day-winning streak, trading around 1.6090 during the European hours on Wednesday. The currency cross is under pressure as the Euro (EUR) holds losses following the release of the latest HCOB Purchasing Managers’ Index (PMI) data for Germany and the broader Eurozone.
Across the Eurozone, September's preliminary figures point to moderate expansion, with services sector activity expected to edge up slightly to 51.7 from August’s 51.6, while manufacturing remains steady at 52.7.
In Germany, business activity presented a mixed picture across sectors. Manufacturing output slowed unexpectedly, with the Manufacturing PMI dropping to 53.8, falling short of the estimated 54.5 and the previous reading of 54.3. However, this slowdown was offset by a strong rebound in the service sector, where the PMI jumped to 52.9 from 49.7 in August, signaling a return to expansionary territory above the 50.0 threshold. Buoyed by this service sector momentum, Germany’s overall Composite PMI rose to 53.8, up from 51.8 in the prior month.
Despite the Euro's weakness, losses for the EUR/CAD cross may be limited as the Canadian Dollar (CAD) faces headwinds from subdued crude oil prices. With West Texas Intermediate (WTI) holding below $90.00 per barrel, commodity-linked CAD buyers are keeping a close eye on global supply developments.
Oil markets remain muted as efforts to resolve Middle Eastern supply disruptions progress: Saudi Arabia is preparing to restart exports via its East-West pipeline to bypass the Strait of Hormuz, while US President Donald Trump reported productive diplomatic talks with Iranian officials, signaling potential stability ahead.
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