Key Moments
- EUR/CAD traded near 1.5970 during European hours on Monday, giving back part of the prior session’s advance.
- Eurozone and German final Composite and Services PMIs matched expectations, offering no fresh support for the Euro.
- Falling WTI crude prices pressured the Canadian Dollar and helped cap deeper EUR/CAD losses.
Euro Under Pressure After PMI Data
EUR/CAD pulled back from recent highs during European trading on Monday, hovering around 1.5970 as the Euro (EUR) stayed on the defensive following the publication of final HCOB Purchasing Managers’ Index (PMI) figures for Germany and the broader Eurozone.
In Germany, the final Composite PMI remained at 53.8 in September, exactly in line with forecasts, while the Services PMI was confirmed at 53.0, also matching expectations. Across the Eurozone, the Composite PMI was reported at 53.1 and the Services PMI at 53.0, both consistent with market estimates and failing to provide a bullish catalyst for the single currency.
Market participants are now turning their attention to the upcoming Eurozone Sentix Investor Confidence release later in the session, which could offer additional insight into sentiment around the regional outlook.
ECB’s Lane Highlights Drag from Higher Long-Term Yields
Sentiment toward the Euro weakened further after comments from European Central Bank (ECB) Chief Economist Philip Lane. He cautioned that elevated long-term interest rates continue to weigh on the region’s growth prospects, underscoring concerns that tighter financial conditions are constraining economic activity.
On inflation dynamics, Lane noted that medium-term inflation expectations remain de-anchored, pointing to persistent uncertainty over the path of price stability across the currency bloc.
Canadian Dollar Softens as Crude Oil Retreats
Despite the Euro’s soft tone, EUR/CAD downside appears contained as the Canadian Dollar (CAD) comes under pressure from weaker crude oil prices. West Texas Intermediate (WTI) crude extended its decline, trading near $88.90 per barrel.
Oil markets have pulled back sharply after G7 countries agreed to release 100 million barrels of crude and diesel from emergency reserves. The group also committed to refrain from imposing energy export restrictions following pressure from US President Donald Trump.
Even with ongoing geopolitical conflict, regional crude supply has shown signs of recovery. Data from Kpler indicated that regional exports briefly rose above pre-war levels in late September, reaching as high as 22.5 million barrels per day compared with a pre-war baseline average of 18 million barrels per day between March 2025 and February.
Euro Performance Against Major Currencies
The table below summarizes the Euro’s percentage moves against a basket of major currencies today. According to the data, the Euro was weakest versus the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.53% | 0.12% | -0.11% | 0.06% | -0.16% | 0.44% | 0.07% | |
| EUR | -0.53% | -0.35% | -0.58% | -0.44% | -0.50% | -0.16% | -0.43% | |
| GBP | -0.12% | 0.35% | -0.23% | -0.07% | -0.14% | 0.19% | -0.07% | |
| JPY | 0.11% | 0.58% | 0.23% | 0.16% | 0.03% | 0.44% | 0.17% | |
| CAD | -0.06% | 0.44% | 0.07% | -0.16% | -0.12% | 0.25% | -0.02% | |
| AUD | 0.16% | 0.50% | 0.14% | -0.03% | 0.12% | 0.34% | 0.08% | |
| NZD | -0.44% | 0.16% | -0.19% | -0.44% | -0.25% | -0.34% | -0.27% | |
| CHF | -0.07% | 0.43% | 0.07% | -0.17% | 0.02% | -0.08% | 0.27% |
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