The current market bias for the AED to CAD exchange rate is range-bound. Key drivers include the interest rate differential, where the Bank of Canada's policy rate remains at 2.25%, inducing a stronger CAD. Economic growth in Canada is bolstered by a robust jobs report, with a decreasing unemployment rate enhancing confidence in the CAD. The UAE's forecasted GDP growth of 4.9% adds positive sentiment for the AED, supported by developments such as the upcoming launch of the Digital Dirham.
Near-term, the AED to CAD rate is expected to trade within a stable range. Recent data shows the pair near 30-day highs, tracking closely with its three-month average. Oil prices, currently at highs around $63.01, could elevate the CAD should they continue to rise, while a downturn in global economic conditions may pressure the AED negatively.