EUR/CAD rates show us a steady upward growth over the past 8 months. As it turned out, the EU economy turned out to be much more resilient despite the heavy losses as a result of sanctions against Russia and the lack of cheap resources. It cannot be said that the Canadian dollar was that weak but the euro turned out to be much stronger. On the chart, you can see in full how raw assets are not in demand among investors now.
Despite the recovery of oil, with the testing of the $ 80 mark, in general, oil rates remain directed downwards. This week, oil has decreased again as pessimism about the global economy prevails among investors due to the continued rise in interest rates, as a result of which business does not have access to cheap loans and cannot develop normally against the backdrop of sanctions wars. Macro reports this week were mixed for the euro as we saw great GDP growth in Italy but unemployment problems and stagnation in Germany. However, this did not negatively affect the value of the euro.
Next week will be more volatile, as the EU inflation reports, manufacturing activity index are published, but most importantly, the ECB meeting will be held, at which the rate is expected to rise. So the euro will get enough chances to rise even more and will probably test the highs made in 2020 when oil fell to $0, leaving the CAD under unprecedented pressure. Technical analysis tools indicate the effectiveness of the Buys in the near future, and we recommend following this signal, but note that the moment of the best entry with short trades is close. Perhaps today it is worth fixing entry points in pending orders so as not to miss this moment.
