Euro Strengthens on German Industrial Data Despite Oil Price Support

The EUR/CAD currency cross has gained strength against its Canadian counterpart after German industrial production numbers surpassed market expectations. The Euro (EUR) remains resilient in the wake of the data release, with the EUR/CAD trading at around 1.6160 during European hours on Friday.

German Industrial Production rose by 0.2% month-on-month in June, beating forecasts of a 0.1% estimate. However, this growth marked a slowdown from May's reading, which was revised down to 0.7% from an initial 0.9%. On a year-over-year basis, industrial output fell by 0.1% in June after holding flat in May.

The European Central Bank (ECB) has decided to keep interest rates unchanged, with market pricing indicating only one additional rate hike before the end of the year and a roughly 40% probability of a second increase.