Euro loses against Canadian Dollar as ECB’s Lane warns economic growth concerns

On Monday, the Euro (EUR) declined against the Canadian Dollar (CAD) as the Eurozone's economic outlook remained uncertain. The EUR/CAD pair settled around 1.5970, following a recent gain from the previous trading day. The Euro's weakness was primarily due to final Composite Purchasing Managers' Index (PMI) data from Germany and the Eurozone, which were consistent with market expectations.

In Germany, the Final Composite PMI stood at 53.8 in September, while the Services PMI was also in line with forecasts at 53.0. Market participants are now focusing on the Eurozone Sentix Investor Confidence report later in the session. ECB Chief Economist Philip Lane warned of rising risks to the regional outlook, stating that higher long-term interest rates continue to impede economic growth.

Medium-term inflation expectations in the Eurozone are also de-anchored, further complicating the economic landscape. Meanwhile, the Canadian Dollar faces downward pressure due to declining crude oil prices, as West Texas Intermediate (WTI) crude traded near $88.90 per barrel. Despite geopolitical tensions, regional crude supplies experienced a brief recovery, with exports briefly exceeding pre-war levels in late September.