It seems that the post below was right to point out that the data today would be significant. It seems that the Candian economy has not had enough time to successfully diversify, and as such, shipping was down more than 2% last month, as the Canadian economy still struggles to revitalise its export base.
While efforts have been made to diversify the economy following the prolonged slump in oil prices throughout the world economy, it seems it is not yet translating into an equally profitable sector in the Canadian economy.
The country is currently bursting with stories of start ups to fill the ‘oil gap‘. Higher unemployment and fewer oil projects are making more people available to work. North West Upgrading, a Calgary-based company, is building Alberta’s first refiner in more than 30 years. Due to the available workforce and falling costs in a stalling economy, the process is expected to be complete a few years earlier and at lower cost.
So the seeds are planted. But we are still waiting for this to translate into increased revenue for the country, they need to get new customers for this new market, a process which takes time. Until then, the poor data for the Canadian economy is favouring those looking to buy the Canadian Dollar.
*DATA WATCH* – Tomorrow, those with GBP-CAD requirements should focus on inflation data released at 8:30am GMT to dictate rates for the day. While the Canadian economy has been struggling, the inflation figures for the UK economy have been abysmal. The worst ever recorded happened only a few months ago as the UK flirted with deflation. I recommend emailing me overnight on firstname.lastname@example.org to discuss how to work this event to your advantage. It is unlikely that inflation could have fallen any further, so if the data suddenly reveals a turnaround tomorrow morning, GBP-CAD will spike in the short-term, before markets settle and the opportunity slips away.
If you have a target rate, then you could achieve this tomorrow. Contact me overnight and we can discuss how to put a limit order in. If the market reaches that rate for even a second, you can secure GBP-CAD at even greater 6 year highs!