- 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).
For further details see:
EUR/CAD: Fundamentals And Sentiment Appear To Support Further Upside