The euro gains against the loonie after WTI crude falls 2% to $75.00, pressuring Canada’s commodity-linked currency.
EUR/CAD climbed to 1.6260 in early Asian trading, extending a two-day rally as the Canadian dollar weakened. The decline in oil prices, with West Texas Intermediate crude down nearly 2% to $75.00 per barrel, weighed on the commodity-sensitive loonie.
The drop in crude followed progress in US-Iran negotiations, which eased supply concerns. Iran secured export waivers and asset releases, reducing fears of a shortage. Mediators confirmed a 60-day roadmap for a final peace agreement.
The European Central Bank’s policy outlook remains a secondary factor, with markets focusing on the oil-driven CAD selloff.