Euro Surges Despite Weaker German Consumer Confidence

The Euro has strengthened against the Canadian Dollar despite weaker-than-expected German Consumer Confidence Survey data. The EUR/CAD cross is trading around 1.6110, with the Euro holding gains despite a decline in consumer confidence to -30.6 in October from -26.8 in September.

Analysts at ING note that while economic resilience remains strong, it's being offset by wider eurozone spreads. French 10-year yields are trading 110bp above bunds, and there has been little relief from reports that Marine Le Pen may back the proposed budget to avert a bond crisis.

The Canadian Dollar is facing downward pressure from falling crude oil prices. The US and Iran are considering a phased agreement to reopen the Strait of Hormuz and lift the US blockade on Iranian ports, which has led to a sharp selloff in WTI crude, down 5.67% on the week.