The EUR/CAD pair climbed after a two-day drop, trading around 1.6210 during European hours on Thursday. Currency movements appear robust, buoyed by encouraging trade data from Germany.
Germany’s trade surplus grew to 19.1 billion euros in May, marking its largest surplus since February. This figure surpassed market expectations of 14.8 billion euros and followed an upwardly adjusted surplus of 14.7 billion euros in April. The increase was primarily fueled by a surprising 0.9% rise in German exports, reaching their highest level in over three years, defying predictions of a 0.3% decline. On the flip side, imports decreased by 2.5%, the lowest in three months, failing to meet the anticipated 0.1% rise and reversing the previous month’s 1.1% increase.
The EUR/CAD exchange rate found support as the Canadian dollar, which is closely linked to commodities, weakened alongside dropping oil prices. As of now, West Texas Intermediate (WTI) crude oil is trading below $73.00 per barrel.
Nonetheless, rising tensions in the Middle East may quickly alter the trajectory of oil prices. For the second consecutive day, the U.S. and Iran have executed military operations aimed at controlling the crucial Strait of Hormuz. Recent U.S. strikes reportedly resulted in three fatalities and several injuries in western Iran, as reported by state news agency IRNA.
