Forex: EUR/CAD above 1.3400 ahead of Canada CPI

FXstreet.com (Barcelona) - After a first drop to 1.3368 low after the European opening, rising demand brought the cross back and above the 1.3400 handle, pricing at its highs currently, at 1.3412. Investors are looking ahead to the Canada CPI report, published at 12:30 GMT.

TD Securities analysts expect Canada CPI to have risen further in March following the sharp move higher in February: “The all-items price index is forecast to have increased by 0.3% in the month on a non-seasonally adjusted basis", wrote analyst Annette Beacher, pointing to the importance of seasonal factors, like in February. "The price series should show a far more temperate 0.1% increase after controlling for seasonality”, she continued, expecting also a 0.3% lift (+0.2% on a seasonally adjusted basis) in core prices.

German PPI fell -0.2% (consensus of 0.0%) and annualized data eased from 1.2% to 0.4% (consensus of 0.7%). EMU current account surprised positively, with a wider seasonally adjusted surplus from €13.8B to €16.3B in February, beating expectations of €15.0B, and n.s.a. data at €12.1B instead of the €1.3B consensus. Italy industrial orders fell -2.5% (MoM) and from -3.3% to -7.9% (YoY), while industrial sales contracted -4.7% (MoM).

Mataf.net analysts point to resistance at 1.3430 and 1.3490. On the downside, supports might be found at 1.3360, 1.3340 and 1.3280.