EUR/CAD rises to near 1.6050, marks fresh seven-year highs

• EUR/CAD has reached 1.6052, the new high since March 2018.
• ECB's Villeroy noted that the central bank may cut interest rates.
• The commodity-linked CAD struggles after WTI prices fell by over 12.50% so far this week.

EUR/CAD continues its winning streak that began on June 16, trading around 1.6040 during the early European hours on Thursday. The currency cross has marked 1.6052, the new high since March 2018, with the Euro (EUR) receiving support amid improving risk appetite.

Earlier this week, European Central Bank (ECB) policymaker Francois Villeroy de Galhau said that the central bank could still cut interest rates despite the volatility seen in the Oil market. "If we look at the present assessment of markets so far, inflation expectations remain moderate," Villeroy added.

Meanwhile, ECB chief economist Philip Lane said that "Our monetary policy will have to take into account not only the most likely path (the baseline) but also the risks to activity and inflation," per Reuters.

The EUR/CAD cross received support as the commodity-linked Canadian Dollar (CAD) faced challenges following a drop of over 12.50% in WTI so far this week. West Texas Intermediate (WTI) Oil trades around $64.60 per barrel at the time of writing. However, Oil prices moved little due to a larger-than-expected draw in United States (US) crude stocks, which signaled firm demand, US Energy Information Administration (EIA) data showed on Wednesday.

In Canada, economic data remains limited following this week's Canadian Consumer Price Index (CPI) inflation print that failed to have much impact on traders. Mid-tier monthly Gross Domestic Product (GDP) figures are slated for Friday, is expected to slump to a flat 0.0% MoM in May.