The Euro recovers against the Canadian Dollar as geopolitical risks ease, while markets await the Bank of Canada’s rate decision this week.
The Euro erased early losses against the Canadian Dollar, trading near 1.6170 in European hours as easing Middle East tensions supported risk sentiment. A spokesperson confirmed mediation efforts by Qatar, Oman, and Pakistan between Iran and the U.S., reducing fears of prolonged conflict.
Oil prices initially surged to near $75.00 but pared gains, settling around $73, while the U.S. Dollar Index dipped to 100.80. The Canadian Dollar also trimmed early strength as crude retreated. Investors now focus on the Bank of Canada’s Wednesday policy announcement, where rates are expected to remain at 2.25%.
Markets will scrutinize the BoC’s inflation and economic outlook commentary, alongside potential signals from the European Central Bank on further rate hikes this year.