CAD/EUR Outlook:
The CAD/EUR exchange rate is slightly positive but likely to move sideways as it hovers near its recent average and has no clear driver for a significant shift. It is currently trading at about 7-day highs but remains within its three-month daily trading range.
Key drivers:
- Rate gap: The Canadian central bank's stance on interest rates is more nuanced compared to the European Central Bank, which seeks to stabilize Eurozone inflation.
- Risk/commodities: Falling oil prices are putting pressure on the CAD, as it is a major oil exporter, contributing to subdued momentum.
- One macro factor: Germany's upcoming consumer price index (CPI) report is expected to show a slight cooling of inflation, which may limit the euro's upside potential.
Range:
The CAD/EUR is likely to drift within its recent range of 0.6120 to 0.6217.
What could change it:
- Upside risk: A stronger-than-expected GDP report from Canada could bolster the CAD.
- Downside risk: A disappointing Germany CPI report might limit the euro's strength against the CAD.
🇨🇦🇪🇺 CAD/EUR Forecasts - End of 2026
🏦 Bank of Montreal
• Target: ~0.67–0.70
• Theme: CAD mildly supported if energy demand holds.
