Falling crude prices weigh on the CAD, lifting the EUR/CAD cross to 1.6180 amid easing geopolitical supply risks.
The EUR/CAD cross climbed to 1.6180 during European trading on Wednesday, extending gains for a third consecutive day. The advance follows a decline in crude oil prices, which pressured the commodity-linked Canadian Dollar.
Oil markets retreated after reports of diplomatic progress in the Middle East, including discussions between Iran and Oman to establish a maritime corridor in the Strait of Hormuz. Additional mediation efforts by Pakistan and Qatar further reduced supply concerns, pushing Brent crude below USD90.
Strategists noted that softer US Treasury yields and lower oil prices reflect easing risk premia, driven by speculation of renewed US-Iran diplomacy. The combination of these factors continues to support the EUR/CAD cross.