Higher crude prices boost the CAD, pressuring EUR/CAD to 1.6090 amid Middle East tensions and Iran-related supply risks.
EUR/CAD fell to 1.6090 in Asian trading Monday, snapping a three-day rally as oil prices surged toward $95.70 per barrel. The Canadian Dollar strengthened on rising crude, supported by Canada’s role as the top US oil supplier and escalating Middle East tensions.
West Texas Intermediate prices climbed after President Donald Trump rejected Iran’s latest proposal, calling it unacceptable. The Strait of Hormuz’s effective closure has tightened supply, amplifying CAD gains. Meanwhile, markets await Trump’s Wednesday meeting with China’s Xi Jinping to address trade and Iran conflicts.
The Euro’s decline may be short-lived as traders price in a hawkish ECB shift, with a 25-basis-point hike expected in June and three more by 2026.