The CAD to AED exchange rate currently displays a bearish bias.
Key drivers include the interest rate differential, as Canada's policy rate remains at 2.25%, while the UAE continues to maintain low rates to support growth. The strong Canadian jobs data, with employment rising significantly, adds support for the CAD. Additionally, a recovery in oil prices, recently at 30-day highs, benefits the Canadian dollar due to its status as a major oil exporter.
In the near term, the CAD to AED rate is expected to trade within a stable range reflective of recent activity.
An upside risk could arise from a stronger than anticipated rebound in global oil prices, further bolstering the CAD. Conversely, a downturn in risk sentiment or an unexpected decline in Canadian economic indicators could pressure the CAD, influencing it against the AED.