The Euro slipped against both the Canadian Dollar and the US Dollar on Tuesday, pressured by expectations of continued rate hikes from the European Central Bank (ECB) and rising crude oil prices bolstering the Canadian Dollar, FX Street reported. The EUR/CAD pair was trading around 1.6040 during European hours, while the EUR/USD declined 0.12% to approximately 1.1535 in early European trading.
Traders are pricing in ECB rate increases extending through early 2027, according to Investing.com Forex, reflecting persistent hawkish sentiment. Despite this, ING’s Francesco Pesole noted that EUR/USD is currently near its short-term fair value, with the ECB's hawkish stance providing support to the Euro amid market volatility.
Meanwhile, German ZEW economic sentiment data continues to influence Eurozone market dynamics. For Japanese investors, these developments are significant as shifts in EUR/USD and EUR/CAD pairs impact global risk sentiment and cross-border investment flows in FX and equities.