Euro struggles against Canadian Dollar despite lower oil prices

Euro declines as the ECB is expected to hold interest rates steady on Thursday, with potential hikes delayed to December.
Moody’s decision to maintain France's credit rating at Aa3 has helped limit downside risks for the Euro.
Falling crude oil prices driven by Middle East diplomatic talks continue to cushion the EUR/CAD cross.

EUR/CAD extends its losses for the sixth successive day, trading around 1.5650 during European hours on Tuesday. The currency cross depreciates as the Euro (EUR) faces challenges ahead of the looming European Central Bank (ECB) policy decision this week.

TMGM Analysis: Financial Market News, Economic Calendar & Market Insights

The ECB is set to leave its key interest rate unchanged on Thursday amid waning economic momentum. Economists surveyed by Reuters expect the central bank to deliver a 25 basis point rate hike at its December meeting instead. Traders will be closely monitoring upcoming comments from ECB President Christine Lagarde for clues on the central bank's policy roadmap moving forward.

Meanwhile, market sentiment surrounding the shared currency received a boost after Moody’s Ratings maintained France’s credit rating at Aa3 last week, despite a steady rise in national debt and political fragmentation that has complicated efforts to rein in borrowing. The decision eased fears that France's fiscal troubles could trigger a broader repricing of Eurozone assets, helping to cap downside pressure on the Euro.

Euro area PMIs soften but still signal solid Q4 growth

Analysts at Danske Bank note that in the Euro area, “the flash PMIs fell slightly more than expected in October but continue to point to decent growth at the start of Q4 despite somewhat softer momentum,” suggesting that survey data, while cooling, remain consistent with a reasonably firm activity backdrop.

Additionally, the downside of the EUR/CAD cross could be limited as the commodity-linked Canadian Dollar faces headwinds from declining crude oil prices. Oil prices fell as renewed diplomatic efforts in the Middle East raised hopes of preventing a wider escalation of the US-Iran conflict. Following high-level talks in Tehran, officials from Iran, Saudi Arabia, Pakistan, and Turkey agreed on Monday to enhance regional cooperation and maintain security discussions aimed at preserving regional peace and stability.

Euro Price Today

The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the weakest against the New Zealand Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		0.16%	0.16%	0.17%	0.05%	-0.06%	-0.13%	0.08%
EUR	-0.16%		-0.00%	0.04%	-0.11%	-0.21%	-0.31%	-0.07%
GBP	-0.16%	0.00%		0.04%	-0.09%	-0.21%	-0.28%	-0.07%
JPY	-0.17%	-0.04%	-0.04%		-0.13%	-0.25%	-0.32%	-0.11%
CAD	-0.05%	0.11%	0.09%	0.13%		-0.11%	-0.19%	0.03%
AUD	0.06%	0.21%	0.21%	0.25%	0.11%		-0.08%	0.14%
NZD	0.13%	0.31%	0.28%	0.32%	0.19%	0.08%		0.23%
CHF	-0.08%	0.07%	0.07%	0.11%	-0.03%	-0.14%	-0.23%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).