EUR/CAD Holds Firm Amid Disappointing German Retail Data and Oil Price Volatility

The EUR/CAD exchange rate is trading near 1.6100 in Wednesday's European session, recovering from modest losses in the previous day.

This comes despite a disappointing German Retail Sales report for August, which rose only 1.3% month-on-month but missed expectations of 2.0%. On an annual basis, sales fell 0.4%, down from a 2.5% decline in July.

The Canadian Dollar is gaining support from firmer crude oil prices, but this effect is tempered by improving Middle East exports and planned US Strategic Petroleum Reserve (SPR) releases.

Oil prices rebounded after US President Donald Trump rejected any willingness to ease sanctions on Iran, but the boost was short-lived as supply conditions in the region improved with 10-day average exports reaching 17.5 million barrels per day, equivalent to 98% of pre-war levels.