The EURO is likely to strengthen against the Canadian Dollar as the European Central Bank signals interest rates are going up in July and September, to move the overnight cash rate from -0.50% to 0.00%.
The reason the EURO will strengthen is down to the fact that interest rate differentials will narrow from the market's previous expectation, so investors who are short EUR/CAD will likely look to cash in on the carry trade as it's now hit its peak unless the Bank of Canada goes further then markets expect with rate hikes.
Oil prices are also a bullish beneficiary to the Canadian dollar, but Oil looks to have peaked since it hit $130.00 on March 8th 2022.
The reason the EURO will strengthen is down to the fact that interest rate differentials will narrow from the market's previous expectation, so investors who are short EUR/CAD will likely look to cash in on the carry trade as it's now hit its peak unless the Bank of Canada goes further then markets expect with rate hikes.
Oil prices are also a bullish beneficiary to the Canadian dollar, but Oil looks to have peaked since it hit $130.00 on March 8th 2022.
Kayan Kalipha
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Kayan Kalipha
免責聲明
這些資訊和出版物並不意味著也不構成TradingView提供或認可的金融、投資、交易或其他類型的意見或建議。請在使用條款閱讀更多資訊。