The CAD to EUR exchange rate is currently range-bound, trading around 0.6187.
Key drivers include the interest rate differential, with the Bank of Canada's steady rate at 2.25%, contrasting with the European Central Bank's flexible policy influence. Additionally, Canada's stronger-than-expected job growth supports the CAD, while recent movements in oil prices, trading just below its 3-month average, add related volatility. The overall economic outlook for the eurozone also remains positive, with projected GDP growth, impacting the EUR's strength.
The near-term trading range for the CAD to EUR pair is likely to remain stable within a narrow band around current levels. Upside risks could arise from further positive developments in Canadian economic data, while downside risks include any escalation in geopolitical tensions affecting the eurozone, which could weigh on the euro's value.