Euro Defies Oil Price Gains as Eurozone Growth Surpasses Expectations

The Euro has maintained its ground against other major currencies due to an uptick in market risk sentiment and stronger-than-expected economic data from the eurozone. The region's economy expanded by 0.4% in Q2, exceeding forecast estimates and marking its strongest growth since early 2025. This momentum was further underscored by July's figures, which saw annual inflation accelerate to 2.9%. Such developments have reinforced market expectations for an ECB interest rate hike.

However, the Canadian Dollar has gained strength due to rising crude oil prices, with West Texas Intermediate (WTI) crude trading around $80.50 per barrel at the time of writing. This capped the EUR/CAD's overall gains, limiting potential upside for the currency cross.