Free Forex Signals

• EUR/CAD weakens as the Euro struggles amid rising risk aversion, escalating Middle East conflicts, and soaring oil prices.
• The Canadian Dollar benefits heavily from elevated energy prices, compounded by ongoing logistical bottlenecks that bypass the Strait of Hormuz.
• Hotter-than-expected US consumer inflation data drove market pricing for an upcoming Federal Reserve rate hike to 87%.

EUR/CAD depreciates further after paring its recent gains from the previous day, trading around 1.6030 during European hours on Monday. The currency cross is currently dropping as the Euro (EUR) faces mounting challenges from increasing risk aversion, rising oil prices, and growing Federal Reserve (Fed) rate hike bets.

Traders are adopting a cautious stance amid fears of a protracted Middle East crisis, which has kept oil prices elevated and delivered an inflationary shock to the global economy. This cautious sentiment is further compounded by recent data from the US Bureau of Labor Statistics, which reported that the US Consumer Price Index (CPI) rose 0.4% month-on-month in August, pushing the 12-month increase to 3.4%. Meanwhile, core CPI increased by 0.3% monthly, outpacing both prior and forecasted 0.2% gains.

US inflation report has intensified pressure on the Federal Reserve to tighten monetary policy further, with the CME FedWatch tool indicating that financial markets have priced in an 87% probability of a quarter-point rate hike at the next meeting, up sharply from 59% the previous week.

European Central Bank (ECB) Governing Council member Gediminas Simkus stated on Monday that the possibility of monetary policy actions at every upcoming meeting cannot be ruled out. Simkus emphasized the need to closely evaluate energy prices ahead of the October policy meeting. Furthermore, he noted that December will serve as a natural timeframe to more thoroughly assess the economic situation.

Moreover, the EUR/CAD cross is also under pressure because the commodity-linked Canadian Dollar (CAD) is receiving strong support from elevated oil prices. Crude oil prices have surged toward nearly four-month highs following a drone attack that forced Saudi Arabia to shut down a major crude pipeline, a critical route traditionally used to bypass the Strait of Hormuz. Operations on the East-West pipeline were suspended immediately as a precautionary measure following Thursday’s attacks, and officials have not yet indicated when normal operations will resume.

Canada inflation data set to test BoC’s hawkish warning

Brown Brothers Harriman’s Elias Haddad highlights that Canada’s August CPI release on Monday will be a key gauge of the Bank of Canada’s recent shift in tone, noting that it will “test the Bank of Canada’s (BoC) warning that ‘the upside risks to inflation have increased.’” With headline and core measures expected to hover around or slightly above the 2% mark, the data will help clarify whether those upside risks are materializing and how firmly the BoC’s hawkish bias is likely to be reinforced.

• FREE FOREX SIGNALS FOR Monday 14/09/2026
• Gold remains depressed above $4,300 as USD sticks to gains amid Fed hike bets, Iran risks
• Euro drops against Canadian Dollar amid energy shocks, growing Fed rate hike pressures
• GBP/USD Price Forecast: Flat lines near 1.3500 as bulls shrug off UK GDP ahead of US CPI
• Gold moves away from one-week low, climbs above $4,450 as USD edges lower ahead of CPI