Yesterday’s trade saw EUR/CAD within the range of 1.4224-1.4479. The pair closed at 1.4249, losing 0.69% on a daily basis.
At 7:38 GMT today EUR/CAD was up 0.28% for the day to trade at 1.4292. The pair touched a daily high at 1.4326 at 4:35 GMT.
Fundamentals
Euro area
Italian consumer inflation – preliminary estimate
Italys preliminary annualized consumer inflation probably decelerated to -0.3% in January, according to expectations, from 0% in December, according to final data released on January 14th. If so, this would be the lowest annual inflation in at least four years. In December the largest upward pressures, causing an impact on annual inflation rate, were reported for restaurants and hotels (+1%), furnishing and household equipment (+0.6%), clothing and footwear (+0.2%) and culture and leisure (+0.2%). On the other hand, prices of non-regulated energy products dropped the most, or 8% year-on-year, following a 3.1% fall in November. Cost of transport dropped 0.9% in December from a year ago, while prices of housing, water, electricity and gas were 0.4% lower. Consumers also paid less for food (a 0.2% decrease).
Key categories, included in Italys Consumer Price Index, are food and non-alcoholic beverages (accounting for 16% of total weight), transport (15%), restaurants and hotels (11%) and housing, water, electricity and other fuels (10%). Other categories are clothing and footwear (9%), furnishing and household equipment (8%), recreation and culture (8%) and health (also 8%). Communication, education, alcoholic beverages, tobacco and other goods and services comprise the remaining 15% of the index.
The nations preliminary annualized CPI, evaluated in accordance with the harmonized methodology, probably decreased 0.4% in January, according to market expectations, following another 0.1% dip in December. If so, this would be the lowest annual harmonized inflation in more than four years. The National Institute of Statistics (Istat) is to release the preliminary CPI report at 10:00 GMT.
Canada
Producer prices
Prices of industrial products in Canada probably rose at an annualized rate of 1.7% in December, according to expectations, following a 1.9% gain in November. If so, this would be the lowest annual increase in prices since December 2013, when a rate of 1.3% was recorded. In monthly terms, producer prices probably fell 0.5% in December, following a 0.4% drop in the preceding month. If so, this would be the fourth consecutive month of decline.
This index measures the change in prices of major industrial goods, sold by manufacturers in the country. It is also used as an indicator of commodity inflation. In case of a larger-than-anticipated decrease in prices, this would have a limited bearish effect on the local dollar. Statistics Canada is to release the official data at 13:30 GMT.
Pivot Points
According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.4317. In case EUR/CAD manages to breach the first resistance level at 1.4411, it will probably continue up to test 1.4572. In case the second key resistance is broken, the pair will probably attempt to advance to 1.4666.
If EUR/CAD manages to breach the first key support at 1.4156, it will probably continue to slide and test 1.4062. With this second key support broken, the movement to the downside will probably continue to 1.3901.
The mid-Pivot levels for today are as follows: M1 – 1.3982, M2 – 1.4109, M3 – 1.4237, M4 – 1.4364, M5 – 1.4492, M6 – 1.4619.
In weekly terms, the central pivot point is at 1.4230. The three key resistance levels are as follows: R1 – 1.4636, R2 – 1.4901, R3 – 1.5307. The three key support levels are: S1 – 1.3965, S2 – 1.3559, S3 – 1.3294.
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