- EUR/CAD may rise as the commodity-linked Canadian Dollar could struggle amid lower Oil prices.
- WTI struggles as oversupply concerns offset risks, with the IEA warning global supply will exceed demand this year.
- The Euro may strengthen as tariff war fears ease after Trump signaled stepping back from tariffs on Europe.
EUR/CAD remains in the negative territory after registering modest losses in the previous session, trading around 1.6160 during the European hours on Thursday. The downside of the currency cross could be capped as the commodity-linked Canadian Dollar (CAD) may face challenges on lower Oil prices, given Canada’s status as the largest crude exporter to the United States (US).
West Texas Intermediate (WTI) Oil price edges lower after four days of gains, trading around $60.40 per barrel at the time of writing. Oil prices struggle as supply risks are levelled by oversupply concerns, with the International Energy Agency (IEA) reiterating that global supply will significantly exceed demand this year despite a modest upgrade to demand growth. Industry data also showed the United States (US) crude inventories rose by about 3 million barrels last week.
Traders will likely observe Canada’s monthly Retail Sales data due on Friday, with expectations of 1.2% increase in November after 0.2% decline in October. Meanwhile, Retail Sales ex Autos may increase by 1.4%, against the 0.6% decline.
The EUR/CAD cross may gain ground as the Euro (EUR) may gain ground amid easing concerns over the tariff war between the United States (US) and the European Union (EU). US President Donald Trump said he would step back from imposing tariffs on goods from European nations opposing his effort to take possession of Greenland.
President Trump also noted that the United States and the North Atlantic Treaty Organization (NATO) had “formed the framework of a future deal regarding Greenland.” However, he did not outline the parameters of the so-called framework, and it remained unclear what the agreement would entail.
