Euro steadies against Canadian Dollar after paring recent losses | FXStreet

EUR steadies against the Canadian Dollar after trimming recent losses as rate expectations diverge between Europe and Canada. In Friday’s European trading, EUR/CAD was largely flat near 1.6150 after easing from intraday declines. Support comes as the euro rises following comments from ECB policymaker Isabel Schnabel, who reiterated that the ECB’s monetary tightening cycle is not over. She said that, from today’s perspective, further rate hikes are needed to return inflation to the ECB’s 2% medium-term target, even after a recent ceasefire. Meanwhile, ECB President Christine Lagarde said the bank can avoid aggressive responses to Middle East geopolitical spillovers. For Canada, the Bank of Canada is expected to hold rates steady for the rest of the year, capping upside for the commodity-linked CAD. Reuters data shows traders pricing in only 17 basis points of additional tightening by December, down from 60 basis points last month.