• EUR/CAD weakens as the commodity-linked Canadian Dollar gains support from recovering Oil prices.
• WTI may decline as reports of a possible Ukraine–Russia ceasefire fueled speculation of future eased sanctions on Russian Oil.
• The Euro draws support from the European Central Bank’s cautious policy stance.

EUR/CAD extends its losses for the second successive session, trading around 1.6260 during the European hours on Thursday. The currency cross loses ground as the commodity-linked Canadian Dollar (CAD) receives support from recovering Oil prices, given that Canada is the largest Crude exporter to the United States (US).

West Texas Intermediate (WTI) Oil price recovers daily losses and is currently trading around $58.60 per barrel at the time of writing. Crude Oil prices may struggle due to a potential Ukraine–Russia ceasefire, which has raised speculation that Western sanctions on Russian Oil could eventually be rolled back. However, overall trading remained thin due to the US Thanksgiving holiday.

Adding to this optimism, US envoy Steve Witkoff will travel to Moscow next week alongside other senior US officials for discussions with Russian leaders on a plan to end the nearly four-year-old war in Ukraine, the deadliest conflict in Europe since World War II.

The downside of the EUR/CAD cross could be restrained as the Euro (EUR) finds support from the European Central Bank’s (ECB) cautious policy stance. Traders expect the ECB to keep its deposit rate unchanged through the end of next year. Traders will closely examine upcoming data releases, including consumer and business confidence surveys, Eurozone inflation expectations, and lending activity figures.

ECB Vice President Luis de Guindos took a cautiously optimistic view on growth on Wednesday, noting that current interest rates remain appropriate. Croatian central bank governor Boris Vujcic added that rate cuts should only be considered if inflation clearly moves below target without signs of a rebound. Meanwhile, ECB Chief Economist Philip Lane stressed that a further slowdown in non-energy inflation is essential to keep overall price growth near the 2% target.