URR - EUR/CAD: Fundamentals And Sentiment Appear To Support Further Upside

• EUR/CAD continues to trade at levels that are materially above the pair's opening price of circa 1.45.
• New joint debt issuance in the EU appears to show promise as a recent (albeit small) issuance was massively over-subscribed.
• With greater fiscal harmonization and the prospect of a much larger and long-term EU debt market, EUR is starting to become more attractive.
• Changes in energy prices this year have also benefited EUR at the expense of CAD. The real yield for EUR/CAD has also improved.
• While EUR/CAD might not struggle with vigor, the medium- to long-term picture appears constructive (from 2021 through 2022).

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