Synopsis: The recent retreat of oil from its peak might only be a temporary relief for the EU. With looming geopolitical tensions, the threat of oil prices bouncing back threatens an already fragile European economy. Coupled with three consecutive months of negative retail sales, the EU faces increasing recessionary pressures. Consequently, ANZ advises skepticism towards any upticks in the EUR/USD and EUR/CAD.

Key Insights:

1. Oil Price Oscillations: Despite oil's recent pullback from its yearly high, ongoing geopolitical events could spur its resurgence, adding pressure to the EU's economic landscape.

2. EU’s Economic Vulnerability: Being a major net energy importer, any surge in energy costs will further suppress the EU’s waning consumer spending. The consistent decline in retail sales — 1.2% month-on-month in August — intensifies these concerns.

3. Currency Strategy: With the present economic headwinds, ANZ's strategy leans towards fading any bullish runs in the EUR/USD and EUR/CAD pairings in the near future.

Conclusion: ANZ's analysis shines a spotlight on the EU's precarious economic situation, influenced significantly by external factors such as volatile oil prices. With recessionary risks on the horizon, the bank's stance suggests caution in expecting sustained strength in the EUR against key currency pairs.