Euro stays firm against Canadian Dollar as oil prices soften

October’s final German HICP figures confirmed prices fell 0.1% month on month and rose 2.8% year on year.
Softer crude prices weigh on the commodity-linked Canadian dollar, helping EUR/CAD hold its ground.
Easing US-Iran tensions and the prospect of a diplomatic settlement weigh on WTI.

Following the release of Germany’s final inflation figures, EUR/CAD is holding its ground near 1.5840 during Wednesday’s European session. The cross has edged higher after recording modest losses the previous day.

A 0.1% month-on-month decline and a 2.8% year-on-year increase in October were confirmed by Germany’s final Harmonised Index of Consumer Prices (HICP) figures, in line with preliminary estimates. The corresponding increases in September were 0.6% and 3.3%, respectively.

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

European sovereign bonds follow US sell-off as markets reprice ECB outlook

As investors priced in a more hawkish ECB path, Deutsche Bank analysts observed that “earlier in Europe, there was a major selloff for sovereign bonds too, although not quite as big as in the US,”. According to the analysts, Bund, OAT and BTP yields climbed sharply. Markets moved close to fully pricing in an ECB rate rise in December and factored in additional tightening through to the June 2027 meeting.

Weaker oil prices are putting pressure on the commodity-linked Canadian dollar (CAD), helping EUR/CAD maintain its footing. West Texas Intermediate (WTI) crude is extending its decline into a fourth consecutive day, with prices near $85.20 per barrel at the time of writing.

Signs of an easing in US-Iran tensions have pushed crude prices lower. Optimism over a possible diplomatic settlement grew after US President Donald Trump suggested that further military strikes against Iran might no longer be needed. At the same time, Congressional Democrats are weighing whether to use the approaching government funding deadline to press the Trump administration to bring the conflict to an end.

Euro Records Its Strongest Performance Against Swiss Franc Today

The euro (EUR) recorded its strongest performance against the Swiss franc today. Its percentage changes against the major currencies listed are set out in the table below.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		0.14%	0.17%	0.03%	0.17%	-0.09%	0.09%	0.33%
EUR	-0.14%		0.03%	-0.11%	0.03%	-0.24%	-0.03%	0.18%
GBP	-0.17%	-0.03%		-0.15%	-0.00%	-0.27%	-0.06%	0.15%
JPY	-0.03%	0.11%	0.15%		0.13%	-0.13%	0.07%	0.28%
CAD	-0.17%	-0.03%	0.00%	-0.13%		-0.26%	-0.06%	0.15%
AUD	0.09%	0.24%	0.27%	0.13%	0.26%		0.22%	0.41%
NZD	-0.09%	0.03%	0.06%	-0.07%	0.06%	-0.22%		0.22%
CHF	-0.33%	-0.18%	-0.15%	-0.28%	-0.15%	-0.41%	-0.22%

Percentage movements between the major currencies are displayed in the heat map. Select the base currency in the left-hand column and the quote currency in the top row. To read EUR (base)/USD (quote), for instance, locate the euro in the left-hand column and follow that row across to the US dollar; the intersecting cell gives the percentage change for the pair.