Euro Gains Momentum Against CAD Despite Sluggish German Output

The Euro (EUR) remains stronger against the Canadian Dollar (CAD) for the second consecutive day, trading at around 1.6080 during European hours on Monday.

This comes after the release of Eurozone Sentix Investor Confidence and Germany's Industrial Production data, which showed weaker-than-expected results.

The sentiment data turned positive in August with a reading of 5.1 in September, following five months of negative numbers.

Despite sluggish economic output in Germany, the ECB is expected to raise its key interest rates by 25 basis points at its upcoming policy meeting on Thursday, which has given support to the Euro.

However, energy prices have surged due to geopolitical tensions, with Brent crude oil up +7.80% last week and +0.80% Friday to $96.28/bbl, putting pressure on risk assets and potentially constraining further gains for the EUR/CAD cross.