Euro Area CPI Rising Again

The initial appearance of CPI in the eurozone in September is worrying. The overall CPI is expected to exceed a historic high of 10% this month. This marks a further significant increase compared to the 9.1% reading last month and is higher than the expected 9.7%. Similarly, the core CPI increased from 4.3% in the previous month to 4.8%, higher than the expected 4.7%.

Due to almost no signs of slowing inflation in the eurozone, hawkish expectations for the European Central Bank remain stable. Just this week, we saw Goldman Sachs increase its forecast for the rest of this year, and now it will further increase by 0.75% twice. As interest rate forecasts rise, the euro may further rise here.

technical viewpoint

EURCAD

EURCAD is currently one of the betting tools used to express bulls' views on the euro. Due to the active tightening of monetary policy by the People's Bank of China, it is now hoping to slow down to a smaller rate hike, while the European Central Bank is accelerating its own pace of monetary tightening, which has narrowed the gap in monetary policy differences and is conducive to further upward movement of the euro and Canadian dollar.

The price has recently broken through the bearish trend line and a flatter bear market channel from its high point so far this year. The exchange rate is currently above 1.3348, and it seems to have bottomed out, indicating further upward potential in the near future, moving downwards towards 1.3766.