EUR/CAD Edges Higher on Strong German IFO, But Oil-Backed CAD Limits Upside
The EUR/CAD currency pair rose on Thursday due to stronger German economic sentiment figures. The IFO Business Climate Index, published by the CESifo Group, increased to 89.9 in September from 88.8 in August, beating expectations of a 89.0 reading.
The Current Assessment Index also climbed to 89.5 versus an expected 89.0, while the Expectations Index rose to 90.4 against a forecasted 89.3.
Despite this positive economic news, gains in EUR/CAD were described as potentially capped by a steady Canadian Dollar, supported by commodity prices tied to Middle East tensions and US-Iran diplomacy.
Rabobank pointed to uncertainty around US energy policy after US Energy Secretary Wright said a US diesel export ban would not work, while Politico reported the White House is preparing a plan for a 90-day ban.