EUR/CAD extends its winning streak for the fourth consecutive session, trading around 1.6230 during the Asian hours on Friday. The currency pair is gaining momentum 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 interest rates unchanged, backed by stable economic performance and inflation hovering near target. Markets currently price only a 40% chance of a rate cut by September 2026. ECB Executive Board member Isabel Schnabel commented 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.
Furthermore, ECB Vice President Luis de Guindos highlighted that the current rate levels are appropriate and urged the central bank to stay “very prudent and cautious” in its approach.
On the other hand, the upside potential for the EUR/CAD cross could be limited as the commodity-linked Canadian Dollar (CAD) receives support from rising oil prices. Canada is notably the largest crude oil exporter to the United States (US), strengthening the CAD amid higher energy prices.
West Texas Intermediate (WTI) crude oil prices extended gains for the second consecutive session, trading around $59.60 at the time of writing, marking an increase of more than 1.5%. The rise in crude prices followed a Ukrainian drone strike that damaged an oil depot at Russia’s Black Sea port of Novorossiysk.
According to the Krasnodar region’s operational headquarters via Telegram, debris from the drone strike hit three apartments, an oil facility at a trans-shipment complex, and several coastal structures, Reuters reported.
Overall, while EUR/CAD continues to climb, cautious ECB outlook and rising oil prices suggest that the pair’s gains may encounter resistance in the near term.
https://bitcoinethereumnews.com/finance/eur-cad-rises-near-1-6250-as-ecb-signals-cautious-rate-stance/