Euro Slips Against Canadian Dollar as Oil Rally Lifts Loonie

The euro weakened against the Canadian dollar on 2026-05-12 as a sustained rally in crude oil boosted the commodity-linked loonie. EUR/CAD edged lower and is testing support near recent lows after the loonie outperformed most G10 peers, driven by supply concerns and firmer demand forecasts for oil. Diverging monetary policy expectations — a more accommodative ECB vs a relatively firmer Bank of Canada — reinforced the move. The shift raises costs for European importers of Canadian goods and benefits Canadian exporters; traders should monitor crude inventory data, Bank of Canada guidance and ECB commentary for further direction.