The EUR/CAD currency pair, which expresses the value of the euro in terms of Canadian dollars, captures the currency market's relative expectations of the eurozone versus Canada. Expectations concern these economic regions' inflation rates, interest rates and (trade) current accounts, among various other factors.
Other "idiosyncratic" factors that are important to this pair include the fact that the euro can be used as a funding currency, due to the negative interest rates in the eurozone, making the currency profitable to sell against higher-yielding currencies. Another factor to consider, especially recently, is that Canada's significant export