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EUR/CAD pulls back toward 1.6100 after hitting a seven-year high near 1.6187.
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Markets focus on the upcoming Trump–Zelenskyy meeting and ECB President Lagarde’s speech.
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Canada’s July CPI is projected to rise by 0.4% month-over-month, signaling stronger inflation momentum.
The EUR/CAD pair retreats toward the psychological level of 1.6100 during Monday’s European trading session, after reaching a fresh seven-year high of approximately 1.6187 in early Asian hours. The correction comes as the Euro (EUR) weakens broadly against its peers, with market participants turning their attention to key geopolitical and economic events.
Investors are closely watching the upcoming meeting at the White House between U.S. President Donald Trump, Ukrainian President Volodymyr Zelenskyy, and several NATO leaders. The agenda is expected to focus on finding a resolution to the ongoing war in Ukraine. Analysts speculate that Trump may attempt to persuade Zelenskyy to consider the terms proposed by Russian President Vladimir Putin during their summit in Alaska on Friday.
A potential breakthrough toward a permanent peace deal between Russia and Ukraine would be positive for the Euro, as it could restore stability and improve supply chain efficiency across Europe.
Focus Shifts to Lagarde’s Speech and Canadian CPI
On the Eurozone front, attention now turns to European Central Bank (ECB) President Christine Lagarde, who is scheduled to deliver a speech on Wednesday at the World Economic Forum in Geneva. Investors will look for any clues regarding the ECB’s monetary policy stance amid ongoing economic uncertainty.
In Canada, all eyes are on the upcoming Consumer Price Index (CPI) data for July, set to be released on Tuesday. The report is expected to show a 0.4% month-over-month increase in inflation, signaling a potential pickup in price pressures. The data will play a key role in shaping market expectations for the Bank of Canada’s (BoC) next policy move.
