Euro Steadies Against CAD as ECB Hikes Rates Amid Global Energy Concerns

The Euro (EUR) has steadied against the Canadian Dollar (CAD) amid ongoing hawkish sentiment from the European Central Bank (ECB), which raised interest rates for the second time this year. The ECB's deposit facility rate was increased to 2.50% at its September policy meeting, as widely expected.

The move is seen as a signal of the ECB's commitment to combating inflation, with President Christine Lagarde warning that headline inflation will remain above the bank's 2% target for an extended period due to ongoing conflicts in the Middle East and Ukraine.

Meanwhile, the Canadian Dollar struggles due to lower oil prices. However, crude oil prices may rebound as concerns over global energy supplies escalate following a warning from top US officials that the conflict between the US and Iran could continue through 2029.