The euro held steady against the Canadian dollar on Tuesday after Germany’s GfK Consumer Climate indicator unexpectedly improved to -21.4 for July from a revised -22.6 in June, beating analyst expectations of -23.0. The increase suggests households have become slightly more optimistic about economic and income prospects, although the index remains deep in negative territory and willingness to buy is still weak. The data came ahead of the European Central Bank’s next policy meeting, where officials are widely expected to leave interest rates unchanged. EUR/CAD has traded in a narrow range as investors weigh the interest-rate differential between the ECB and the Bank of Canada, firm oil prices that support Canada’s currency, recent Bank of Canada rate cuts and broader economic concerns. The pair’s near-term direction is likely to depend on inflation data, central-bank communication and global risk sentiment. Earlier coverage had focused on a rise in Germany’s Ifo Business Climate Index to 87.3 in May from a revised 86.2 in April, alongside softer crude prices and Canadian retail sales; the latest update instead centers on household sentiment and firmer oil prices.