The CAD to CZK market is currently bearish.
Key drivers include the interest rate differential, with the Bank of Canada lowering rates while the Czech National Bank maintains a higher rate at 3.50%. This difference discourages investment in the Canadian dollar. Rising unemployment in Canada adds pressure, while stable inflation and positive growth projections for the Czech economy support the koruna. Additionally, fluctuations in oil prices impact the CAD, with current oil trading above its average, which may assist the Canadian dollar if prices continue to rise.
The CAD to CZK is expected to trade within a 2% range above recent levels. A potential upside risk for the CAD could be a significant rebound in oil prices, while downside risks include continued poor employment data or exacerbation of trade tensions affecting Canadian exports.