The Euro gains against the Canadian Dollar despite higher oil prices, supported by strong Canadian jobs data and Middle East tensions.
EUR/CAD climbed to 1.6070 during European trading hours on Monday, recovering from a 0.5% loss the prior day. The currency pair advanced as the commodity-linked Canadian Dollar faced pressure despite a rise in oil prices, driven by renewed Middle East tensions after Israel and Iran exchanged strikes.
Canada’s labor market added 88,000 jobs in May, surpassing forecasts and reinforcing expectations that the Bank of Canada may maintain elevated interest rates. Meanwhile, Eurozone Sentix Investor Confidence improved to -13.4 in June from -16.4 in May, signaling a modest recovery in investor sentiment.
WTI crude prices rose amid escalating geopolitical risks, including retaliatory strikes by Yemen’s Iran-backed Houthis and reported Israeli military actions in Iran. Despite the oil rally, the CAD struggled to gain traction against the Euro.