The Bank of Canada is expected to maintain its current policy stance through the second quarter of 2026, with resilient sales and investment forecasts despite earlier shocks to oil prices, according to FX Street citing the Royal Bank of Canada's Business Outlook Survey.
Meanwhile, the Euro declined toward the 1.13 level against the US dollar in June despite the European Central Bank adopting a more hawkish tone. FX Street referencing the National Bank of Canada noted that the EUR/USD pair continues to be influenced primarily by relative interest rate differentials.
For Japanese investors, these developments highlight the importance of monitoring North American and European central bank policies, as shifts in the Canadian dollar and Euro can impact FX and equity markets in Japan through trade and investment linkages.