EUR/CAD Rally Continues as ECB Officials Prepare Markets for June Hike

EUR/CAD has extended a near-term rally as increasingly hawkish ECB rhetoric (Villeroy de Galhau, Philip Lane, Isabel Schnabel) lifted the euro and markets priced in a June ECB rate hike. Falling Brent crude (mid-$90s) weighed on the Canadian dollar and reinforced euro strength. Technically, the pair has resumed its rebound from 1.5941 and is approaching key resistance at 1.6148; a firm break would reopen the path toward 1.6247 and a 61.8% projection target at 1.6335. Conversely, a drop below 1.6036 would undermine the bullish case and likely produce sideways trading. Market positioning assumes BoC stays on hold for the rest of the year, supporting the CAD weakness narrative.