Euro Gains on Canadian Dollar as Falling Oil Prices and Risk Appetite Weigh on Loonie

The euro strengthened against the Canadian dollar as falling WTI crude (below $78/bbl) and a broad risk-on shift pressured the commodity-linked loonie. EUR/CAD climbed to a fresh intraday high as oil-driven CAD weakness and firmer European data (notably better-than-expected German industrial production) supported the euro. Traders view the pair’s break above resistance as signaling potential further upside, though risks remain from geopolitical shocks, sudden oil reversals, or changes in ECB/BoC guidance. The Bank of Canada’s policy decision early next month is flagged as a key upcoming catalyst for the pair.