Forex
EUR/CAD Loses Momentum on Rising Oil Prices Amid Middle East Tensions
The EUR/CAD currency cross has hit a snag in its three-day winning streak, trading around 1.6110 during European hours on Thursday.
The CAD is gaining support from rising crude oil prices due to escalating tensions in the Middle East and stalled negotiations between the US and Iran.
However, the EUR could regain ground as it receives support from new policy shifts by the US Treasury, which will inject significant dollar liquidity into the market via its General Account.
The underlying flow picture for the Eurozone remains supportive, with foreign investors buying a lot of eurozone debt and equities, according to analysts at ING.