Euro Advances Against Canadian Dollar On Strong German Trade, Weak Oil

• Euro holds gains following stronger-than-expected trade data from Germany.

• Germany's May trade surplus widened to €19.1 billion, as exports grew 0.9% while imports fell 2.5%.

• The commodity-linked CAD weakens as falling oil prices drag the oil-sensitive currency down.

EUR/CAD gains ground after two days of losses, trading around 1.6210 during the European hours on Thursday. The currency cross remains stronger following stronger-than-expected trade data from Germany.

Germany's Trade Surplus widened to €19.1 billion in May, marking the largest surplus since February. This comfortably beat market forecasts of €14.8 billion and followed an upwardly revised €14.7 billion surplus in April. This expansion was driven by an unexpected 0.9% month-on-month surge in German exports, which hit a three-and-a-half-year high and defied expectations of a 0.3% decline. Conversely, imports dropped by 2.5% to a three-month low, missing the estimate for a 0.1% growth and reversing the previous month's 1.1% gain.

The EUR/CAD cross found support as the commodity-linked Canadian Dollar (CAD) weakened in tandem with falling oil prices. West Texas Intermediate (WTI) crude slips below $73.00 per barrel at the time of writing.

However, crude oil prices could quickly reverse course due to escalating Middle East tensions. For the second consecutive day, the United States (US) and Iran traded military strikes over control of the strategic Strait of Hormuz. The latest American attacks killed three people and left several others wounded in western Iran, according to the official state news agency, IRNA.