Euro advances against Canadian Dollar due to hawkish ECB sentiment
EUR/CAD gains ground after two days of losses, trading around 1.6030 during the European hours on Wednesday.
The Euro (EUR) strengthened against the Canadian Dollar (CAD) on Wednesday, trading near 1.6030 during European hours. Traders expect the European Central Bank (ECB) to raise interest rates by 25 basis points (bps) at its September meeting, driven by surging energy prices due to the ongoing US-Iran conflict. The Eurozone's inflation rose back above 3% in August, leading to predictions of a so-called "dovish rate hike."
However, the Canadian Dollar may benefit from elevated oil prices, as Canada is a major crude exporter. Oil prices surged following US strikes on Iranian tankers near Kharg Island, heightening geopolitical tensions and raising concerns about potential disruptions to global oil supplies.
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