EUR/CAD falls under 1.6150 as Oil gains amid supply worries

EUR/CAD Retreats Amid Rising Oil Prices

After advancing for two straight sessions, the EUR/CAD pair slipped back to approximately 1.6140 during Tuesday’s European trading hours. The Canadian Dollar (CAD) gained momentum, buoyed by climbing oil prices, as Canada remains the top crude supplier to the United States.

West Texas Intermediate (WTI) crude continued its upward trend for a second day, hovering near $66.70 per barrel at the time of reporting. This keeps WTI close to its highest level in six months, last seen at $67.23 on February 23.

Oil markets are reacting to worries over possible supply interruptions, fueled by escalating tensions in the Middle East. On Monday, US President Donald Trump expressed his preference for a diplomatic solution with Iran ahead of renewed talks set for Thursday in Geneva. However, he cautioned that failure to reach a nuclear agreement could result in severe consequences for Tehran.

The Euro found renewed strength, helping EUR/CAD earlier, after the European Parliament halted the ratification of the US-EU trade agreement. This move followed a Supreme Court decision overturning several tariffs from Trump’s second term.

Further support for the Euro came as Germany’s IFO Business Climate Index climbed to 88.6 in February, marking a six-month peak and surpassing both expectations and January’s figure. Investors are now awaiting Germany’s upcoming Harmonized Index of Consumer Prices (HICP) release and fresh data from the Eurozone for more insight into inflation trends and the European Central Bank’s future policy direction.