Key Moments
- EUR/CAD trades close to 1.6160 in early European dealings, with activity muted in a holiday-shortened week ahead of Christmas.
- ECB President Christine Lagarde stated monetary policy is in a “good place” and signaled rates are likely to remain unchanged for an extended period.
- Canadian Dollar sentiment improves as WTI crude trades near $57.00 per barrel amid worries over potential supply disruptions.
EUR/CAD Stable in Thin Pre-Holiday Trade
EUR/CAD is showing limited movement after modest gains in the previous session, trading around 1.6160 during early European hours on Monday. Market participation is constrained as investors navigate a holiday-shortened week leading into Christmas, curbing volatility in the cross.
ECB Policy Outlook Supports the Euro
The European Central Bank (ECB) has maintained its key policy rate at 2.0% since June, and its latest decision to leave rates unchanged last week was accompanied by upgrades to both growth and inflation projections. ECB President Christine Lagarde reiterated that monetary policy is in a “good place” and indicated that interest rates are expected to stay unchanged for an extended period.
Oil-Linked Support for the Canadian Dollar
EUR/CAD may face downside pressure as the Canadian Dollar (CAD), which is closely tied to commodity performance, receives support from firmer Oil prices. Canada is described as the largest Oil exporter to the United States (US), linking CAD dynamics closely to crude market developments.
West Texas Intermediate (WTI) Oil is trading near $57.00 per barrel at the time of writing. Crude prices are advancing amid rising concerns about possible supply disruptions. Tensions between the US and Venezuela have intensified after the US reportedly moved against another vessel near Venezuelan waters following the seizure of two Oil tankers this month.
Geopolitical Tensions Add to Oil Market Uncertainty
Market participants are also monitoring developments in Eastern Europe. Ukraine struck a Russian tanker in the Mediterranean Sea for the first time, following previous attacks on Lukoil facilities in the Caspian Sea. On Sunday, US and Ukrainian officials described talks in Miami as “productive and constructive,” although they noted that no breakthrough had been achieved.
Euro Performance Against Major Currencies
The table below presents the percentage change of the Euro (EUR) versus major currencies today. According to the data, the Euro showed its strongest performance against the US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.17% | -0.27% | -0.14% | -0.14% | -0.41% | -0.35% | -0.11% | |
| EUR | 0.17% | -0.11% | 0.00% | 0.03% | -0.25% | -0.19% | 0.05% | |
| GBP | 0.27% | 0.11% | 0.13% | 0.14% | -0.14% | -0.05% | 0.16% | |
| JPY | 0.14% | 0.00% | -0.13% | 0.03% | -0.24% | -0.18% | 0.06% | |
| CAD | 0.14% | -0.03% | -0.14% | -0.03% | -0.28% | -0.21% | 0.03% | |
| AUD | 0.41% | 0.25% | 0.14% | 0.24% | 0.28% | 0.06% | 0.31% | |
| NZD | 0.35% | 0.19% | 0.05% | 0.18% | 0.21% | -0.06% | 0.24% | |
| CHF | 0.11% | -0.05% | -0.16% | -0.06% | -0.03% | -0.31% | -0.24% |
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