CAD/EUR Outlook:
The CAD/EUR exchange rate is likely to increase as it trades above the recent 90-day average and is at a 90-day high. The Canadian dollar is benefiting from rising oil prices, which supports further upward momentum.
Key drivers:
• Rate gap: The Bank of Canada is maintaining a tighter policy compared to the European Central Bank, which is likely to influence the CAD positively against the EUR.
• Risk/commodities: Oil prices are at 90-day highs, significantly supporting the CAD as it’s a major oil exporter.
• One macro factor: Consumer spending in Germany has contracted unexpectedly, adding pressure on the euro.
Range:
The CAD/EUR rate is expected to drift within its recent 3-month range, testing higher levels.
What could change it:
• Upside risk: A sustained increase in oil prices could drive the CAD higher.
• Downside risk: A return of euro strength driven by better-than-expected inflation data could weaken the CAD.
🇨🇦🇪🇺 CAD/EUR Forecasts - End of 2026
🏦 Bank of Montreal
• Target: ~0.67–0.70
• Theme: CAD mildly supported if energy demand holds.
