EUR/CAD climbs above 1.6200 as Oil slips, Euro steadies

• EUR/CAD edges higher as the commodity-linked Canadian Dollar weakens amid softer Oil prices.
• WTI price drops as the API Weekly Crude Oil Stock rose by 4.4 million barrels last week.
• The Euro steadies as traders expect the ECB to adopt a cautious stance.

EUR/CAD rebounds after three days of losses, trading around 1.6210 during the Asian hours on Tuesday. The currency cross gains ground as the commodity-linked Canadian Dollar (CAD) comes under downward pressure amid lower crude Oil prices.

West Texas Intermediate (WTI) Oil price halts its four-day winning streak, slipping to near $60.50 per barrel at the time of writing. Crude Oil prices weakened following another inventory build in the United States (US).

The latest American Petroleum Institute (API) report showed US crude stocks rising by 4.4 million barrels last week, the third straight weekly increase and the largest in over five months. The data, along with the IEA's projection of a record surplus in the coming year, reinforced worries that global supply may outstrip demand.

However, the upside of the EUR/CAD cross could be restrained as the Canadian Dollar (CAD) may gain support as traders expect the Bank of Canada (BoC) to adopt a cautious stance in near-term policy decisions.

The BoC core prices stayed close to the 3% mark in October, with unemployment at 6.9%, and wage growth around 4%, reinforcing the central bank's cautious stance. Markets widely expect the BoC to keep interest rates unchanged through the end of 2026.

The EUR/CAD cross also draws support as the Euro (EUR) maintains its position amid the cautious sentiment surrounding the near-term European Central Bank's (ECB) monetary policy outlook. The ECB is widely expected to keep rates unchanged, supported by stable economic performance and inflation near target.