What are CAD to EUR forecasts?
The Canadian Dollar (CAD) experienced some fluctuations in recent trading sessions, mainly attributed to weaker oil prices which were counterbalanced by a rise in the US Dollar (USD). CAD is positively correlated with USD, and further direction could be provided by the release of Canadian PPI data from April. FX analysts believe that if producer prices increase, this may fuel speculation about potential tightening of monetary policy by the Bank of Canada (BoC).
The Euro (EUR) has been exhibiting an unclear direction in its recent trading sessions, despite gaining some support due to downbeat market sentiment. The single currency faced pressures from a stronger USD, with which it has a negative correlation, as well as weaker-than-expected consumer confidence readings. The EUR could face further headwinds if the upcoming Eurozone PMIs highlight concerns about a weakening private sector. Economists note that the euro fell below parity against the greenback in 2022 for the first time in two decades, due to factors such as Russian oil and gas threats and uncertainty over the European Central Bank's interest rate plans. CAD to EUR currently stands at 0.6839, which is just 0.7% above its 3-month average of 0.6789 and has been trading within a stable 5.9% range between 0.6580 and 0.6970.
In summary, the CAD and EUR exchange rate forecast remains influenced by several factors, including potential shifts in the Bank of Canada's monetary policy, Eurozone PMIs, as well as trends in the US Dollar and oil prices. As both currencies face headwinds in the near term, market participants will be closely monitoring data releases and economic indicators for possible directional cues.