EUR/CAD is a weak downtrend in favor of the Canadian dollar. Slowly but surely quotes are declining. Over the past 6 months, the price has decreased by 3.87%. Our previous forecast about sales, of course, turned out to be correct. The Canadian dollar is supported by high oil prices, as well as geopolitical events in the Middle East, as a result of which oil may become even more expensive. However, not everything is as simple for the Canadian dollar as it might seem at first view.
The Canadian currency was under pressure this week amid low inflation and questionable perspective for further interest rate increases. At the same time, business sentiment in Canada dropped to its lowest level in 10 years. The situation was better in the EU this week, where the economic sentiment index increased, reaching a positive value of 2.3 points in October.
Next week the focus will be on the Bank of Canada meeting and manufacturing sales. In the current conditions, we still give preference to new Sell deals, since the Canadian dollar may receive support from the latest increase in the rate, as well as from rising oil prices.
-zaojdcqfydr.jpg?w=3840)