Euro Steady vs CAD Ahead of ECB Decision

The Euro (EUR) remains steady against the Canadian Dollar (CAD), trading around 1.6060 as of Thursday, virtually unchanged on the day.

This consolidation comes ahead of the European Central Bank's (ECB) monetary policy decision, due at 12:15 GMT. The ECB is expected to raise its Deposit Facility Rate by 25 basis points (bps) to 2.5%, a move that is largely priced in by markets.

Investors will be closely watching the press conference by ECB President Christine Lagarde for clues on the future path of interest rates. A hawkish stance could support the Euro and push EUR/CAD higher, while indications that the tightening cycle is nearing its end could weigh on the pair.

The Canadian Dollar has shown limited sensitivity to the latest flare-up in US-Canada trade tensions, with strategists at Scotiabank noting that 'if the White House does have a beef with the low CAD, some further clarity is required.'