EURCAD January 2026 fundamental analysisEuro/Canadian DollarFX:EURCADOneirotradeEUR/CAD Current Level: 1.6080 | 1-Month Change: -0.64% | Trend: Downtrend Fundamental Analysis: EUR/CAD shows weakness as the Canadian dollar benefits from the BoC's hawkish hold stance (rates at the lower end of neutral with potential for hikes). The ECB maintains its neutral policy with rates at 2.00%, creating a 25-basis-point differential favoring CAD. The euro's gains against the dollar (driven by Fed easing) have not extended to strength against CAD, which has been supported by Canadian economic resilience and the BoC's messaging. Canada's labor market has surprised to the upside with better employment data, while the eurozone's growth remains moderate. Trade risks surrounding USMCA renegotiations could further support CAD if uncertainties persist. The pair's recent -0.64% decline reflects steady CAD strength. Recent Price Action: Downtrend with -0.64% monthly decline. The pair shows consistent weakness without volatility spikes, suggesting a steady fundamental deterioration. Verdict: SELL – Interest rate differential advantages for CAD, BoC's hawkish messaging, and economic resilience in Canada all support CAD strength and EUR weakness.