EUR/CAD Ticks Up on Stronger German IFO Despite Oil-Backed CAD

The EUR/CAD currency pair ticked up in European trading hours on Thursday after a stronger-than-expected German IFO Business Climate Index reading. The index rose to 89.9 in September from 88.8 in August, beating the consensus forecast of 89.0.

This move was not without its limits, however, as the Canadian Dollar, which is closely tied to oil prices, continued to hold steady and cap any potential upside for the EUR/CAD pair near 1.6060.

The IFO Business Climate Index reading showed surprising resilience in Germany's economy, but the volatile energy markets and tensions in the Middle East kept a floor under crude oil prices and supported the Canadian Dollar.