The market bias for the CAD/CZK exchange rate remains bearish, currently trading near 15.00, just above its three-month average.
Key drivers include the interest rate differential where the Bank of Canada maintains a steady rate at 2.25%, while the Czech National Bank shows signs of stability in its monetary policy. Additionally, recent trends in oil prices may weigh on the CAD, as current oil prices are 3.3% below their three-month average, which affects Canadian exports.
Over the next one to three months, trading is expected to remain within a stable range.
Potential upside risks primarily stem from a rebound in Canadian retail sales and overall job growth, which could support CAD strength. Conversely, a downside risk may arise if global economic uncertainties lead to further declines in oil prices, adversely affecting the Canadian economy and the CAD value against the CZK.