Euro Weakens Against Canadian Dollar on Growth Concerns and Oil Drop

The euro slipped against the Canadian dollar on Monday, with the EUR/CAD exchange rate hovering near 1.5970 during European trading hours. The decline came despite Eurozone and German final Composite and Services Purchasing Managers' Indexes (PMIs) meeting expectations, as the data failed to provide fresh support for the single currency.

The euro faced additional pressure following comments from European Central Bank (ECB) Chief Economist Philip Lane. He warned that higher long-term interest rates are dragging down the region's growth prospects, while medium-term inflation expectations remain uncertain. These remarks underscored ongoing concerns about tighter financial conditions and their impact on economic activity in the Eurozone.

Meanwhile, the Canadian dollar weakened as crude oil prices dropped. West Texas Intermediate (WTI) crude fell to around $88.90 per barrel after the G7 countries agreed to release 100 million barrels of crude and diesel from emergency reserves. This move, along with a commitment to avoid energy export restrictions, contributed to the decline in oil prices.

The euro also saw broader weakness against major currencies, with the table summarizing its performance showing the single currency was weakest versus the Japanese yen.