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Euro holds gains vs Canadian dollar after eurozone trade balance data

EUR/CAD traded around 1.6100 as a eurozone trade deficit and hawkish ECB comments offset weaker industrial production.

Reported · Written up by our desk · Major Pairs

The euro stayed firmer against the Canadian dollar for a second straight day, with EUR/CAD trading around 1.6100 during European hours on Thursday, according to FXStreet.

The move followed seasonally adjusted eurozone Trade Balance data showing a deficit of 7.8 billion euros in May, swinging from a prior surplus of 1.3 billion euros. FXStreet said the euro also drew support from ECB-linked messaging that leaned hawkish.

FXStreet noted that commentary from ECB officials, including Austrian Central Bank Governor and ECB board member Marin Kocher saying the bank is “ready to act” if second-round inflation effects emerge, helped keep expectations for potential rate hikes later this year.

The cross also extended higher as the commodity-linked Canadian dollar weakened, with FXStreet tying that to easing crude prices amid heightened US-Iran tensions and risks to energy supplies near the Strait of Hormuz.

Latest closeWTI crude $80.18 ▲1.1%

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