Exchange Forward.

When I have a long forward position on EUR

and the spot rate is 1.64 CAD/EUR

the forward rate is 1.63 CAD/EUR

wheres the question?

Which currency has higher interest rate?


BTW, being long or short is irrelevant to answering this specific question

The EUR is trading at a Forward Discount.

So according to covered interest rate parity, I would say that the EUR has higher rate, hence depreciates.