Yesterday was largely uneventful for the Canadian Dollar. Few data releases on either side of the Atlantic saw the situation in Greece dominating the relationship between most currency pairs.
While the Greek delegation suddenly showed themselves to be more conciliatory in their run-up to their referendum on July 5th, offering new terms, and rumours that they were more open to accepting further cuts flourished. However, with nothing concrete announced, rates refused to move below or above 1.96 for GBP/CAD as no more capital flowed in or out of the UK economy off the back of the Greek crisis.
Today, however, will be the exact opposite. Mammoth data releases in the US today for the unemployment rate, as well as manufacturing Data for the Canadian economy, should see some of the focus move away from Europe and back to North America when deciding the value of the Canadian Dollar. The Canadian Dollar is tied strongly to the US Dollar as a result of the intimate trading relationship between the two economies. These data releases will be between 13:30 and 14:30 GMT and will likely be staggered, so this will be the most volatile period of the day unless further news emerges from the Greek negotiations.
US employment growth has been slowing as of late, if these come in poorly again this could further weaken the Canadian Dollar, creating tempting buying opportunities. Personally I feel that the rates will balance out from strong manufacturing data in the Canadian economy, a sector which has received staggering amounts of investment since the oil industry’s contraction this year.
With this amount of volatility and a lot of uncertainty about weather the CAD will win or lose today, anyone with a short term requirement should consider moving before 13:30 GMT to secure these currently favourable buying levels and remove the uncertainty from your transaction. To help budget more effectively call into 01494 787 478.