Euro Surges for Eighth Straight Day Amid Improved Market Sentiment and Strong Eurozone Data

The EUR/CAD currency cross has continued its winning streak for an eighth consecutive day, trading around 1.6170 during European hours on Tuesday.

The Euro is gaining support from an uptick in market risk sentiment following a slight easing of geopolitical tensions after US President Donald Trump called off planned military strikes on Iran.

Eurozone economic data has also provided a boost to the Euro, with the region's economy expanding by 0.4% in the second quarter, exceeding forecast estimates and marking its strongest growth since early 2025.

Strategists at BNY note that the absence of additional tightening by the Fed has led to hopes of easier financial conditions globally, partially cushioning the impact of ECB policy via the external channel. However, potential gains for the EUR/CAD cross may be capped by strength in the commodity-linked Canadian Dollar (CAD), with crude oil prices having pushed upward due to ongoing diplomatic friction in the Middle East.

The West Texas Intermediate (WTI) crude price gained over 2% to trade around $80.50 per barrel at the time of writing, providing underlying support for the CAD.