Eurozone Inflation Data Lifts EUR/CAD Floor Toward 1.6148

Stronger-than-expected Eurozone inflation has reinforced near-term support for EUR/CAD after the pair first gained ground on German retail sales data. Core CPI printed at 2.5% y/y and services inflation reached 3.5% y/y, lifting market odds of a 25bp ECB deposit-rate hike to 2.25%. The move follows the euro’s advance from 1.4600 to 1.4650 triggered by January German retail sales beating estimates by 0.7pp month-on-month. Traders now assess whether persistent inflation or softer oil prices can push the cross above the 1.6247 ceiling, while 1.6040 remains key support.