Lower oil prices and softer-than-expected Canadian inflation data support the euro against the loonie near 1.5960.
EUR/CAD climbed to 1.5960 in European trading Wednesday, recovering from modest losses the prior session. The move follows a pullback in oil prices, which pressured the commodity-linked Canadian dollar.
West Texas Intermediate crude halted a four-day rally, trading near $102.80 per barrel. Canada’s status as a major oil exporter ties its currency closely to energy markets. Meanwhile, April inflation rose 2.8% annually, below the 3.1% forecast, easing concerns over further Bank of Canada rate hikes.
Core inflation measures cooled, reinforcing the central bank’s view that energy-driven price pressures may fade. The cross remains supported as traders assess the outlook for monetary policy divergence.