The EUR/CAD market appears to be range-bound with slight bearish tendencies as conditions evolve.
The European Central Bank's (ECB) cautious stance on euro strength and its impact on inflation is a key driver. Additionally, the Canadian dollar remains flat due to stalled oil prices, significantly influencing its value given Canada’s position as a major oil exporter. Recent positive job data in Canada strengthens the CAD, creating a favorable macroeconomic backdrop.
Expect the EUR/CAD exchange rate to trade within a stable range over the next few months, reflecting current market levels.
Upside risks could arise from a shift in global oil prices, which might bolster the CAD if they recover significantly. Downside risks may occur if geopolitical tensions escalate, affecting the euro's stability amidst economic uncertainty in the Eurozone.