The CAD to AED exchange rate is currently bearish, reflecting recent declines.
Key drivers include a persistent interest rate differential, with the Bank of Canada maintaining a policy rate of 2.25%, while the UAE Central Bank shows robust economic growth, projected at 5.3% in 2026. The softer Canadian manufacturing sector, with a PMI below 50, signals ongoing economic challenges, pressuring the CAD further. Additionally, fluctuations in oil prices are notable; oil recently traded near 62.09 USD, which is impacting the Canadian dollar given its status as a major oil exporter.
In the near term, CAD to AED is expected to trade within a narrow range, influenced by recent movements that have seen it near 14-day lows. An upside risk could arise from stronger-than-expected economic data from Canada, possibly affecting trader sentiment. Conversely, a downturn in global risk sentiment due to geopolitical tensions could lead to further declines in the CAD as investors seek safe-haven currencies.