Euro Crumbles Against CAD as US-Iran Tensions Fuel Oil Price Surge

The Euro (EUR) fell against the Canadian Dollar (CAD) for the fifth consecutive day, trading around 1.6080 during European hours on Tuesday.

This decline comes as rising risk aversion, driven by escalating US-Iran tensions, weighs on the cross.

Intensifying conflict in the Middle East has heightened fears of oil supply disruptions, adding strain to energy-dependent Eurozone economies and rekindling inflation concerns.

The European Central Bank's (ECB) hike odds have edged higher as hawkish repricing gathers pace, with a September hike now at a 90% chance, up from 85% last Friday.

The EUR/CAD cross depreciates as the commodity-linked Canadian Dollar (CAD) continues to gain support from higher oil prices, which remain stronger for the second successive day, trading around $83.30 per barrel.