Euro gains against Canadian Dollar as oil prices retreat on rising US crude inventories
EUR/CAD extends its gains for the second consecutive day, trading around 1.6090 during European hours on Wednesday. Traders are closely watching the European economic calendar, as the seasonally adjusted Eurozone Industrial Production figures for July are scheduled for release later in the day.
The euro strengthened against the Canadian dollar for the second day in a row, trading near 1.6090 on Wednesday. Market participants are closely monitoring the European economic calendar, with Eurozone industrial production figures for July due later that day. Rabobank analysts note that investors are anticipating multiple rate hikes rather than a single move, with markets pricing in more than four additional rate hikes beyond the two already implemented by the European Central Bank (ECB).
The euro gained as the Canadian dollar struggled to sustain momentum after crude oil prices retreated from multi-month highs due to an unexpected increase in US crude inventories. Despite the inventory build, crude prices could rebound due to supply disruptions in the Middle East, including canceled deliveries from Saudi Arabia and uncertainty surrounding the East-West pipeline following Iranian-backed attacks.
Canadian inflation remained steady at 3% year-over-year in August, indicating a stable price environment. The Bank of Canada (BoC) aims to keep inflation within 1-3%, influencing the Canadian dollar through interest rate adjustments. Higher oil prices benefit the Canadian dollar as it is Canada's largest export, and a positive trade balance further supports the currency.
Economic indicators like GDP, manufacturing and services PMIs, employment, and consumer sentiment surveys can impact the Canadian dollar's value.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
