Traders price in a June ECB rate increase, lifting the euro and pushing EUR/CAD to 1.6110 after a brief dip.
The euro extended gains in early European trading Thursday, with EUR/CAD recovering to 1.6110 after losing ground the prior session. The currency pair’s rebound reflects growing expectations of a European Central Bank rate hike in June, bolstering demand for the euro.
EUR/CAD had slipped in recent sessions but found support as markets priced in tighter ECB policy. Analysts note the central bank’s hawkish signals in recent communications, contrasting with a more cautious stance from other major central banks.
The cross remained steady around 1.6110, reflecting a balance between ECB rate hike bets and broader market sentiment ahead of the upcoming policy decision.