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EUR/CAD rises near 1.6250 as ECB signals cautious rate stance

  • EUR/CAD appreciates as the Euro receives support from the cautious ECB policy stance.
  • ECB policymakers noted that there is no need to adjust interest rates under current economic conditions.
  • The commodity-linked CAD gains as the WTI price climbed after a Ukrainian drone strike on a Russian Oil depot.

EUR/CAD continues its winning streak for the fourth successive session, trading around 1.6230 during the Asian hours on Friday. The currency cross gains as the Euro (EUR) is supported by cautious sentiment surrounding the European Central Bank’s (ECB) monetary policy outlook. The ECB is widely expected to keep rates unchanged, supported by stable economic performance and inflation near target, with markets pricing only a 40% chance of a rate cut by September 2026.

ECB Executive Board member Isabel Schnabel stated on Wednesday that there is no need to adjust interest rates under current conditions, emphasizing that the central bank’s primary focus remains on core inflation. Moreover, ECB Vice President Luis de Guindos stressed that the current rate levels are appropriate and urged the central bank to stay “very prudent and cautious.”

The upside of the EUR/CAD cross could be limited as the commodity-linked Canadian Dollar (CAD) receives support from higher Oil prices. It is worth noting that Canada is the largest crude exporter to the United States (US).

West Texas Intermediate (WTI) Oil price extends its gains for the second successive session, trading around $59.60, up by more than 1.5%, at the time of writing. Crude prices climbed after a Ukrainian drone strike damaged an Oil depot at Russia’s Black Sea port of Novorossiysk. The Krasnodar region’s operational headquarters said on Telegram that drone debris hit three apartments, an Oil facility at a trans-shipment complex, and several coastal structures, per Reuters.

Euro Price Today

The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the British Pound.

USDEURGBPJPYCADAUDNZDCHF
USD-0.09%0.25%-0.02%-0.02%-0.13%-0.52%-0.13%
EUR0.09%0.34%0.07%0.07%-0.04%-0.45%-0.04%
GBP-0.25%-0.34%-0.26%-0.26%-0.37%-0.77%-0.37%
JPY0.02%-0.07%0.26%0.03%-0.10%-0.50%-0.10%
CAD0.02%-0.07%0.26%-0.03%-0.12%-0.50%-0.11%
AUD0.13%0.04%0.37%0.10%0.12%-0.39%0.00%
NZD0.52%0.45%0.77%0.50%0.50%0.39%0.40%
CHF0.13%0.04%0.37%0.10%0.11%-0.00%-0.40%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).

Author

Akhtar Faruqui

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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