On the first trading day of the week, the euro fell against the loonie after lower-than-expected consumer confidence data for April were released. The report from Canada’s Industrial Product Price Index for March was expected by the market. Yesterday did not see any more significant economic announcements. In the last day, the EUR/CAD pair fell from a high of 1.4655 to a low of 1.4585 overall.
According to Statistics Canada, the country’s Industrial Product Price Index (IPPI) inched up 0.80% m-o-m in March, following a 1.10% increase in the previous month and in line with economists’ estimates.
The increase was led by a 4.90% growth in prices for primary non-ferrous metal products after decreasing for three successful months. The reported figure reflects the steepest monthly rise for the commodity group since December 2022.
Likewise, meat, fish, and dairy product prices grew by 3.10% m-o-m in March. Also, lumber and other wood products recorded a price increase of 3.6% in March, reflecting the third successive monthly rise. The increase was led by a 7.80% rise in prices for softwood.
The prices of energy and petroleum products rose by 1.10% m-o-m in March. Similarly, the prices of chemicals and chemical products inched up 0.70% m-o-m in March.
On a y-o-y basis, the IPPI fell by 0.50% in March 2024, reflecting the sixth successful yearly decline. The decrease was led by a 25.90% plunge in the prices of unwrought nickel and nickel alloys. Likewise, diesel fuel recorded a decline of 7.30%. Wood pulp posted a decrease of 18.40%, while grain and oilseed products plunged 17.60%.
Statistics Canada also stated that the Raw Materials Price Index (RMPI) rose by 4.70% m-o-m in March, reflecting the steepest monthly growth since March 2022, following an increase of 2.10% in the previous month and higher than forecasts of 2.90%.
The increase was led by an 8.10% m-o-m increase in the prices of crude energy products. Likewise, conventional crude oil prices rose by 7.20%.
Metal ores, concentrates, and scrap recorded an increase of 4.30% m-o-m in March, reflecting the steepest month-on-month rise since December 2022.
Animals and animal products recorded 2.20% m-o-m growth in March. Also, crop products posted a rise of 1.10% m-o-m in March, reflecting the first monthly rise since July 2023.
On a y-o-y basis, the RMPI grew by March 2024, reflecting the first increase since September 2023. Excluding crude energy products, the RMPI declined 0.80% in March 2024.
Conventional crude oil recorded an increase of 7.10% y-o-y in March 2024. Similarly, nickel ores and concentrates plunged 25.90% in the same period.
The Eurozone consumer confidence index remained unchanged at -14.70 in April, compared with the previous month and a notch higher than forecasts of -14. The reported reading reflects the highest level of sentiment since February 2022.
In the short term, it is anticipated that the EUR/CAD pair will remain range-bound due to the lackluster economic data from both countries.
The historical price chart indicates that the EUR/CAD pair is declining after facing resistance at 1.4700. The next major support is anticipated to be only near 1.4480. Additionally, the currency pair is trading below its 50-day moving average, while the stochastics indicator is in the bearish zone.
Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.
