The current market bias for the CAD to EUR exchange rate is range-bound.
The Canadian dollar (CAD) remains stable amid stalled oil prices, with recent figures showing it traded near 0.6203, only slightly above its three-month average. Meanwhile, the Euro (EUR) faces pressure from European Central Bank (ECB) concerns over a stronger euro potentially increasing inflation. This is compounded by stable but cautious economic signals from Germany, affecting overall growth expectations.
Further support for the CAD has arisen from a recent jobs report, which displayed substantial job growth and a drop in unemployment. On the flip side, Eurozone uncertainties involving geopolitical tensions and trade dynamics continue to affect the euro's valuation.
In the near term, expect the CAD to EUR exchange rate to fluctuate within a modest range. An upside risk could arise from improved oil prices boosting the CAD, whereas a downside risk may stem from falling ECB interest rate expectations, putting pressure on the euro.