The CAD to EUR exchange rate is currently range-bound.
Several factors influence this situation. First, the interest rate differential between the Bank of Canada (BoC) and the European Central Bank (ECB) is minimal, with both banks maintaining steady rates (2.25% for BoC). Second, the recent Canadian job growth has improved confidence in the CAD, while Germany's economic policies aim to support growth in the Eurozone, offsetting concerns about the euro's strength. Lastly, the Canadian dollar is affected by oil prices, which are currently below their three-month average, adding some pressure to the loonie.
Expect the CAD to EUR rate to trade within a stable range over the next couple of months. Upside potential could arise if Canadian retail sales boost confidence in the economy. Conversely, an escalated geopolitical event or weak global demand for commodities could weigh heavily on the Canadian dollar, weakening its position against the euro.