EUR/CAD REMAINS BELOW 1.5800 AFTER PROJECTIONS SHOW LIKELY MINORITY CARNEY GOVERNMENT
EUR/CAD REMAINS BELOW 1.5800 AFTER PROJECTIONS SHOW LIKELY MINORITY CARNEY GOVERNMENT
The EUR/CAD currency pair reversed an earlier dip to the 1.5755–1.5750 region during the Asian session, reaching a fresh daily high.
it lacked follow-through buying momentum and currently trades around the 1.5780–1.5785 area, nearly unchanged for the day.
Projections indicating a likely minority government under Prime Minister Carney have influenced market sentiment.
This political uncertainty has contributed to the current trading range of the EUR/CAD pair.
Both the Euro and the Canadian Dollar face similar negative fundamentals, including expectations of interest rate cuts by the European Central Bank (ECB) and the Bank of Canada (BoC), leading to a lack of directional movement in the EUR/CAD pair.
The ECB and BoC are both expected to reduce interest rates towards the end of 2024, which is negative for both the EUR and CAD.
This anticipation of rate cuts has kept the EUR/CAD pair trading within a narrow range.
The Canadian Dollar faces additional downside pressure from US election risks and lower crude oil prices, which have weighed on the CAD and contributed to the range-bound trading of EUR/CAD.
