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The EUR/CAD cross trades in positive territory for the fourth consecutive day near 1.6460 during the early European session on Friday. The Euro (EUR) strengthens against the Canadian Dollar (CAD) as the political crisis in France eases. The European Central Bank (ECB) policymaker Joachim Nagel is set to speak later on Friday. 

French Prime Minister Sébastien Lecornu has survived two no-confidence votes after separate motions were lodged against him amid continued political turmoil in the country. Lecornu’s survival gave France a moment to breathe after weeks of political crisis that plunged the country into deep uncertainty over its future and weighed on its economy. This, in turn, could underpin the EUR against the CAD in the near term. 

On the other hand, a surprise gain in employment in September has dampened expectations for another rate cut by the Bank of Canada (BoC) in October, which might support the CAD and act as a headwind for the cross. 

The Canadian central bank reduced its policy rate by 25 bps to 2.5% in September, the first cut since March. Money markets are now pricing in nearly a 50-55% odds of a 25 basis points (bps) reduction, down from around a 70% chance earlier this month. 

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