The EURCAD forex currency pair could provide volatility for traders with a Canadian GDP number ahead.
EURCAD is trying to regain the bullish momentum after a recent downtrend from the highs above 1.46 in January.
What drove markets
Traders will have a release of French GDP on Tuesday, and there have been concerns in the country over the pressure from 6% inflation. French President Emmanuel Macron said last week he favoured a new cut on diesel prices to help customers struggling with inflation.
“I hope that the dialogue between the ministry and the companies concerned can be finalised as was done last year on fuels with rebates at the pump which had been made by companies like Total,” he said.
The French government is meeting with retailers to find ways to help shoppers cope with high food price inflation to find a solution to the problem by March 15. French food giant Danone reported a full-year increase in sales but admitted that soaring inflation and higher costs had hurt its profit margin.
The critical release for Tuesday will be Canadian GDP, with analysts expecting the annual reading to drop from 2.9% in the previous quarter to 1.5%. There are also concerns over Canadian property prices after a steep decline in housing markets.
EURCAD Prediction
Oxford Economics warned in a recent report that the global risks of housing market crashes spiralling into banking crises are now much higher than historical norms. Using a banking sector risk measure of 35 macroeconomic and financial indicators, Oxford believes that up to 16% of major economies have an 18 to 20% chance of suffering a housing crisis within the next three to five years, compared to a historical average of just 2%.
Canada, Iceland, the Netherlands, Sweden, and Denmark, were marked as the five most vulnerable, with a 7% probability of a banking crisis within the next year and 18 to 20% over the next three to five years.
