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Euro slips against Canadian dollar amid US Iran oil supply fears
EUR/CAD extends a five-day decline near 1.6080 as stronger WTI prices support the commodity-linked Canadian dollar, while ECB rate expectations shift higher.
FXStreet reports EUR/CAD is extending its slide for a fifth straight day, trading around 1.6080 during European hours on Tuesday. The euro is under pressure as risk aversion rises on escalating US-Iran tensions, which are also rekindling concerns about potential oil supply disruptions for Eurozone economies.
The outlet links the move to higher oil prices, noting that West Texas Intermediate remains stronger for a second consecutive day at about $83.30 per barrel. That strength is also providing support for the Canadian dollar, which is described as commodity-linked.
FXStreet also highlights changes in interest rate expectations in Europe, pointing to Deutsche Bank commentary that a September ECB hike is back near a 90% chance, up from 85% last Friday. The broader backdrop includes renewed inflation concerns tied to the intensifying conflict.
On the geopolitical front, FXStreet says Iran has ruled out future negotiations with US President Donald Trump and that Tehran plans to wait until the end of his term on January 20, 2029, before considering talks. The piece adds that it cited Commerzbank views on Canada’s fragile recovery risk, including a tariff threat from the US of 50% on certain Canadian goods if no agreement is reached by August 19.