Euro snaps three-day losing streak against Canadian Dollar, BoC policy eyed

The Euro recovers against the Canadian Dollar after a three-day losing streak.
The BoC is expected to leave interest rates unchanged at 2.25%.
Analysts at MUFG expect the ECB to deliver another interest rate hike this year.

Sagar Dua FXStreet

The Euro (EUR) bounces back against the Canadian Dollar (CAD) after a three-day losing streak, trading 0.13% higher to near 1.6078 during the European trading session on Wednesday. The EUR/CAD pair remained under pressure in the last three trading days, as oil prices surged due to renewed hostilities in the Middle East.

Canadian Dollar Price Today

The table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies today. Canadian Dollar was the weakest against the British Pound.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.11%	-0.13%	-0.05%	-0.01%	-0.15%	-0.04%	-0.01%
EUR	0.11%		-0.07%	0.06%	0.09%	-0.09%	0.00%	0.10%
GBP	0.13%	0.07%		0.13%	0.15%	-0.02%	0.08%	0.16%
JPY	0.05%	-0.06%	-0.13%		0.02%	-0.12%	-0.02%	0.02%
CAD	0.01%	-0.09%	-0.15%	-0.02%		-0.14%	-0.09%	0.00%
AUD	0.15%	0.09%	0.02%	0.12%	0.14%		0.07%	0.13%
NZD	0.04%	-0.01%	-0.08%	0.02%	0.09%	-0.07%		0.08%
CHF	0.00%	-0.10%	-0.16%	-0.02%	-0.01%	-0.13%	-0.08%

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 Canadian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CAD (base)/USD (quote).

The WTI Oil price is up over 17.5% in the last two weeks to near $79.00. Currencies from economies, such as Canada, which are net energy exporters, tend to outperform in a high-oil-price environment.

Later in the day, investors will pay close attention to the Bank of Canada’s (BoC) monetary policy announcement at 13:45 GMT. The BoC is expected to leave interest rates unchanged at 2.25%, as signs of an easing of underlying price pressures give policymakers little reason to raise borrowing costs while a rebound in economic growth after a technical recession reduces the need for any stimulus, Reuters report.

In the Eurozone, the resurgence in energy prices due to renewed war between the United States (US) and Iran has increased fears of more interest rate hikes by the European Central Bank (ECB) this year. Analysts at MUFG expect the ECB to deliver another 25 basis points (bps) rate hike in the September meeting.

Lately, a few ECB officials have also warned that inflationary pressures could remain higher due to Middle East conflicts. ECB Governing Council Member and President of the Deutsche Bundesbank, Joachim Nagel, said earlier this month, “I will keep options open for July and September decisions,” citing, “Inflation will stay at a high level this year.”

Economic Indicator

BoC Interest Rate Decision

The Bank of Canada (BoC) announces its interest rate decision at the end of its eight scheduled meetings per year. If the BoC believes inflation will be above target (hawkish), it will raise interest rates in order to bring it down. This is bullish for the CAD since higher interest rates attract greater inflows of foreign capital. Likewise, if the BoC sees inflation falling below target (dovish) it will lower interest rates in order to give the Canadian economy a boost in the hope inflation will rise back up. This is bearish for CAD since it detracts from foreign capital flowing into the country.

AUD/USD holds firm near 0.7000 after Chinese inflation, trade data

AUD/USD stays firm near 0.7000 in Wednesday’s Asian session, picking up some bids after China's mixed inflation and upbeat trade data. CPI rose less than expected in September, while PPI inflation picked up. Meanwhile, the Chinese trade surplus unexpectedly widened in September. The pair remains underpinned by a broadly subdued US Dollar, despite the Middle East escalation, as focus remains on US CPI data.

USD/JPY consolidates near 158.50; looks to US CPI for fresh impetus

USD/JPY stays range-bound near 158.50 in the Asian session on Wednesday, with looming intervention risks supporting the Japanese Yen and capping upside amid a softer US Dollar. However, geopolitical uncertainties act as a tailwind for the safe-haven USD and the pair. Traders also seem hesitant ahead of the release of the latest US inflation figures.

Gold looks to $4100 and US CPI inflation amid geopolitical risks

Gold falls for the third straight day on Wednesday, as the recent recovery falters ahead of US inflation. US Dollar pauses correction amid rising Oil prices and stabilizing US Treasury bond yields. The daily bearish RSI remains a headwind for Gold buyers, with $4,100 seen at risk.

Bitcoin eyes $85,000; ETH holds support, XRP stabilizes

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) show signs of recovery on Wednesday as buyers try to regain control after their recent market weakness. BTC extends its rebound toward the $85,000 resistance, while ETH and XRP find support around key levels.

What happens after a US Treasury market crash

The global bond market is under severe pressure as US Treasury yields reach multi-decade highs, driven by persistent inflation risk, heavy government and corporate debt issuance, and expanding term premiums. Higher yields raise borrowing costs and tighten financial conditions, but a severe bond selloff can ultimately shift investor focus from inflation to growth and financial stability.

Has Bitcoin really escaped the macro forces it was built to fight?

Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?